When Google Went Public the Firm Sold Its Stock in an Unusual

question 11

Essay

When Google went public the firm sold its stock in an unusual way. What was that method and how did it impact future sales of IPOs?

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Definitions:

Accrued Revenue

Revenue that has been earned but not yet received in cash or recorded by the accounting system.

Management Fees

Fees paid to managers for operating investment funds or managing assets.

Unrealised Profit

Profit that has been earned but not yet received in cash or recorded in the financial statements, often resulting from intra-company transactions.

Mark-up

The amount added to the cost price of goods to cover overhead and profit, determining the selling price.