1.[Related to the Economics in Practice ] On March 16, 2018 Zscaler, a cloud-based information security company...

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1.[Related to the Economics in Practice ] On March 16, 2018 Zscaler, a cloud-based information security company based in San Jose, California that started operations in 2008, offered 12 million shares of stock at an introductory price of $16 per share

(an initial value of over $190 million) through an IPO on the NASDAQ stock exchange. At the end of the same day, Zscaler stock had closed at a price of $33 per share, 106 percent above its IPO price. Why might a company like Zscaler choose the IPO route to raise funds? What are some of the other options that the company might have considered before deciding on the IPO, and why might these options have been less attractive to Zscaler?

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Principles Of Economics

ISBN: 9780135161104

13th Edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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