Abstract:
In this paper we will discuss about
Microsoft's IPO. It had entered into the market in 1986 and got immediate success. On the very opening day, Microsoft's stock price went high. The founders of the company earned millions in no time.
Microsoft, the largest producer of home PC in the world, issued their first IPO in 1986. It did well on its very first trading day.
The opening price of Microsoft's stock was 19.75 dollars on the opening day of trading.
Microsoft's stock price closed at 27.75 dollars after its blistering opening and once, in the mid of the day it had reached upto 29.25 dollars.
In addition to that, the number of shares, that had been traded hands was more than the number of shares offered, 3.095 million.
- Initially 2.5 million shares had been offered to the public, but later on, the number got increased due to the increasing demand for Microsoft's IPO.
- That high turnover of Microsoft IPO indicated that some stocks had been traded in several hands within the span of one or two hours.
- As a result, the founders of Microsoft, Paul Allen and Bill Gates, turned into a millionaire within a short span of time.