Google and the Equity Market In Jan 1996, Google was born as a research project by two PhD students: Larry Page & Sergey Brin. The company was incorporated in the garage of their friend in Sep 1998. Kleiner Perkins Caufield & Bryers, and Sequoia Capital provided $25 million to Google in Jun 1999. After examination of Google's financial status and growth potential, Morgan Stanley and Credit Suisse purchased majority of the 19.6 million shares from Google, while other 26 investment banks including Goldman Sachs, Allen & Co, and Lehman Brothers purchased the rest. In Aug 2004, These 28 investment banking firms resold them to investors at $85 per share, which was determined through auction. In exchange for underwriting service, these investment banks earned $2.38 (2.8%) per share in exchange for their service. 1) Name the role the following entities play: Google Larry Page & Sergey Brin Kleiner Perkins Caufield & Bryers, and Sequoia Capital Morgan Stanley and Credit Suisse Goldman Sachs, Allen & Co, and Lehman Brothers 2) How much did Morgan Stanley pay to Google for one share it purchased? 3) The offering above is IPO / SEO. 4) The shares issued by Google above were traded in primary / secondary market. 5) Why did Morgan Stanley earn lower from Google's offering than it earned from other firms