Unformatted text preview: quisition. VALUATION
y LISTED STOCK VS. NASDAQ : There is a sizable body of discussion as to whether it is better to be listed on an exchange, and be the captive of a spet or to be on NASDAQ. In the NASDAQ market you need at least one “Market Maker”, an investment banker who will make a market in your stock. Stocks with a lot of interest have dozens of “Market Makers.” – If you are listed with an under capitalized Spet, your stock may really suffer in times of heavy selling. The job of the Spet is to make an “orderly” market. VALUATION
y y DEBT/ EQUITY RATIO: As important as this is in the internal management of the firm, it will probably not affect the multiplier of a publicly owned firm unless it is at one extreme too much debt or a “Clean balance sheet” meaning no long term debt.
DIVIDENDS: Most publicly held developing firms do not pay (any significant) dividends; if they did, people would think that they have “leveled off” and are not growing any more. This could be disastrous for their stock price. VALUATION
y CORPORATE IMAGE: A function of many subjective things:
– COMPANY NAME ...
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- Fall '07