Pay Pal suffered a number of setbacks and challenges in bringing its IPO to market. The company was attempting to go public after the dot-com bubble had been burst, during a time when the IPO market for tech stocks -- especially those that were not turning a profit -- was terrible. The debut was delayed at the last minute due to a legal challenge from a company known as CertCo, which filed a patent infringement suit. The company had received notice from the state of Louisiana saying that it would not be allowed to do business there until it received a money transmission license (Glasner, 2002). This was seen as a sign that similar challenges could impede its ability to do business in any number of jurisdictions.
The IPO was planned with a proposed sale of 5.4 million shares at a price between $12-14, to raise in the neighborhood of $76 million. The IPO reportedly had a lot of momentum behind it, primarily because the service was popular with eBay users, meaning that PayPal had a strong long-term demand growth trajectory if it could overcome other companies with similar product offerings, including Yahoo and Citibank (Wolverton & Kane, 2002). This accounted for the relative popularity of the IPO despite the weak market for public offerings at the time (Patsuris, 2002). This strength allowed PayPal to go public despite the setback. The shares were eventually released at $13, and went to $20.09 on the first day of trading, indicative of the strength that the offering had in the market (Friedman, 2002).
Although the process was ultimately...
Pay Equity As American business enters the 21st century the issue of unequal pay for equal work continues. The course of attaining the objectives of just wages for all workers by eradicating the wage disparities between men and women workers is known as pay equity. It necessitates that the unequal jobs of comparatively same value to the employer is to be given the equal wages. Pay equity is considered to be a
Pay Equity 1001 EHR Tutorial Exercise Week No & Date: Corrections/refinement during tutorial discussion - feedback (Done in class) What explanations are given by this alliance to account for the gender-wage gap? What evidence is used to support this? Is it convincing? Why or why not? You might also like to look at the submissions made to Fair Work as part of the equal remuneration case. Submissions were also made by employers and employer associations
Zippittelli v. J.C. Penney Company Case Study Case Summary The case of Zippittelli v. J.C. Penney Company stems from a hiring dispute between the plaintiff, Joanne Zippittelli, and her employer, J.C. Penney Company. In the summer of 2004 the plaintiff worked for the defendant as a general lead clerk in the Call Service Center, and after being informed by her boss that the position of shift operations manager had become available, the
The other reason for higher salary is based on the performance of the employees. If the employee generates more revenue, they may be given higher compensation as a reward which will also act as an incentive for future improved performance. This is usually the case for sales department whereby the pay can be based on commission. Basing on the red-circling, higher compensation can be given to the employee i.e.
From the standpoint of the labor market, the lack of equity in the public system would continue to exist until the market force becomes united and demands a better protection of its rights. For now however, when the people fear the loss of their jobs and when the market place is saturated, the public employers are not pressured to implement equity. At the level of personal evaluation and job contributions,
AMSC had announced a letter of intent for secured debt financing in July of 2003 (AMSC 2003 Annual Report) when the stock was trading in the range of $8 per share. The blackout gave the firm's stock considerable momentum, and it finished the month of August up over 50% at $12.19 per share (MSN Moneycentral, 2010). Equity issues normally result in dilution of the stock price, since the issue
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