This case is the fall of 1998 by the decision of eBay management to begin the initial public offering of the company during the IPO quiet market in twenty years. In the event that the chief financial officer at eBay consider the financial and competitive consequences of delay, the offer, and the problem of pricing of shares rather unseasoned developing Internet stock. Case provides an excellent forum for students to discuss the costs and benefits of going public. In the case of review of events in the first trading day of eBay and the resulting 160 percent return on equity. With this background, students are exposed to one of the known anomalies Finance - IPO underpricing phenomenon. - And are encouraged to critically discuss the various proposed explanations "Hide
by Michael J. Schill, Jason Burnett Source: Darden School of Business 15 pages. Publication Date: March 22, 2002. Prod. #: UV2497-PDF-ENG
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