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Monthly Archives: June 2012

‘Dutch’ Customs with Familiar Values Make For Unmatched Bedfellows

The act of “going Dutch” implies for one to pay for him/herself (or to provide for one’s own expenses) when in a group setting in order for financial cohesion to exist: The recent actions behind Facebook’s (NASDAQ: FB) less- than- stellar entrance into the market has brought forth the resurgence of a debate that involves the financial and strategic issues found in the traditional initial public offering (IPO) process versus a rather contemporary approach known as a Dutch auction.

Since the presence of online retail brokerages have broadened the ways that companies can raise capital, the need for private companies to go public has diminished.  This is evidenced by the fact that during the Internet Bubble (1996-2000), the average number of IPOs per year was 539 (the average pre-bubble was 520/year), and post-bubble (data from 2001-2008), the average number has dropped to 134 per year, a third of its former size. (more…)

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