Posted by & filed under Accounting Principles, Advanced Accounting, Intermediate Accounting, IPO's.

Description: In the largest initial public offering (IPO) in US history, Chinese internet marketer, Alibaba, began trading on the New York York Stock Exchange on Friday. Alibaba now has a market capitalization larger than a number of Silicon Valley heavyweights, including Facebook and Amazon. Yahoo, however, may be smiling quietly in the background. As an early investor in Alibaba, Yahoo may have made over  $8 billion on the IPO.

Source: ABC news.com

Date: September 21, 2014

Link: http://abcnews.go.com/Technology/wireStory/alibabas-big-debut-10-things-256584712

Questions for Discussion:

1) What do you think about the price investors paid for Alibaba shares in this initial IPO?

2) How would Yahoo account for this impressive gain on its original investment in Alibaba?

3) Why do you think Alibaba chose to list its shares on the New York Stock Exchange versus another closer exchange, such as the Hong Kong exchange?

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