Here's What to Expect From Alibaba's First Day of Trading

The transcript discusses the anticipation and market reactions to Alibaba's IPO, highlighting concerns about its impact on market returns and the demand from financial institutions. It explains the book building process and the manual compilation of orders on the NYSE. The discussion also reflects on lessons from past IPOs like Facebook and Twitter, emphasizing the importance of controlling supply to avoid a chaotic market opening.

What was a major concern regarding the Alibaba IPO?

• The high cost of shares

• The potential impact on overall market returns

• The lack of interest from investors

• The involvement of too many financial institutions

Which companies expressed interest in acquiring a significant amount of Alibaba stock?

• Goldman Sachs and Morgan Stanley

• T. Rowe Price and Wellington

• Microsoft and Apple

• Google and Amazon

What is the role of the New York Stock Exchange in the Alibaba IPO?

• To set the IPO price at $74

• To manually compile buy and sell orders

• To limit the number of shares available

• To automatically open trading at 9:30 AM

What is ironic about the Alibaba IPO process?

• It is being done entirely online

• It is expected to fail like Facebook's IPO

• It is the first IPO of its kind

• It involves manual compilation for an e-commerce giant

What lesson was learned from the Facebook IPO?

• To increase the number of shares available

• To tightly control supply and demand

• To avoid involving large financial institutions

• To rely on automated systems