LendingClub Starts Trading in NYSE Today

The transcript discusses the IPO pricing strategy, highlighting the psychological aspect of pricing above the range to indicate strong investor demand. It then delves into Lending Club's history, its CEO Ranad Laplanche's vision, and his financial gains from the IPO. The discussion also compares Lending Club's IPO process with Alibaba's, noting differences in banking strategies and similarities in business models as marketplaces.

What is one reason companies might price their IPO above the initial range?

• To decrease investor interest

• To create a perception of strong demand

• To avoid market competition

• To reduce company valuation

What inspired Ranad Laplanche to start Lending Club?

• A desire to enter the e-commerce market

• Observing high credit card interest rates

• A need to diversify his investment portfolio

• A suggestion from a financial advisor

What market share does Lending Club hold in its industry?

• 50%

• 20%

• 30%

• 40%

How did the IPO process of Lending Club differ from Alibaba's?

• Alibaba had a single lead bank

• Lending Club used multiple lead banks

• Alibaba's IPO was not underwritten by Morgan Stanley

• Lending Club followed a traditional process with one lead bank

What is a similarity between the business models of Lending Club and Alibaba?

• Both have the same IPO process

• Both focus on e-commerce

• Both are traditional banks

• Both are marketplaces connecting different parties