Auction

A venture capitalist named Bill Hambrecht has attempted to devise a method that can reduce the inefficient process. He devised a way to issue shares through a Dutch auction as an attempt to minimize the extreme underpricing that underwriters were nurturing. Underwriters, however, have not taken to this strategy very well. Though not the first company to use the Dutch auction, Google is an established company that went public through the use of auction. Google’s share price rose 17% in its first day of trading despite the auction method. Perception of IPOs can be controversial. For those who view 19)__________ to be one that raises as much money as possible, the IPO was a total failure. For those who view a successful IPO from the kind of investors that eventually gained from the 20)__________, the IPO was a complete success. It’s important to note that different sets of investors bid in auctions versus the open market – more institutions bid, fewer private individuals bid. Google may be a special case, however, as many individual investors bought the stock based on long-term valuation shortly after it 21)__________, driving it beyond institutional valuation.

Ex.7. Read through this additional information about IPO. Write out key words and phrases and translate them into English. Use specialized dictionaries. Render the text in English using your notes (key words and phrases) to be interpreted back into Russian by other students.