You've got the Prada boots, now how about a little piece of Prada?

If you've ever invested in a handbagshoes or item of clothing by the venerable Italian fashion house, you probably feel like you should rightfully own a piece of the company for the price you paid. Well smart girl, now, you really can own Prada. That's right, Prada is going public. The company plans to offer an initial public offering IPO on the Hong Kong Stock Exchange on June 24th. The company, Prada SpA, was founded by Mario Prada in It is privately owned by its president Miuccia Prada, her brother Alberto Prada, her sister Marina Prada, and the company's Chief Executive Officer, Patrizio Bertelli.

In addition to the Prada brand, the company includes Miu Miu, Church's and Car Shoes. An IPO or 'new issue' refers to new securities being offered to the marketplace for the very first time. The purpose is to raise a lot of money for the company in a quick fashion, by selling shares of ownership on a stock exchange to the general public. Prada hopes to sell Generally, a company chooses to raise money by going public when it wants to grow; after all, the new investors will expect a nice return on their investment, in the form of a rising share price and possibly dividends.

When a company has a good 'growth story' - it wants to expand into new markets, hire more people, open new stores, buy other businesses, or raise its profile for the purposes of mergers and acquisitions with other companies - it turns to the stock market where it can invite public investors to take part in its growth. The first step is to prepare a prospectus. This is a document that basically serves as an introduction of the company to investors.

It outlines who owns the company, who runs the company, what the company's business lines are and how it makes money. It also includes financial statements for the company and a description of what the company's plans are for the money it hopes to raise. The company hires an underwriter to help with the process of the IPO. Investment banks such as Goldman Sachs, Morgan Stanley, RBC Dominion Securities or CIBC World Markets, will serve as the underwriter.

The underwriter helps the company to determine the initial price for the shares when they are first released onto the stock exchange. After that, the shares trade freely.

The underwriter tries to choose a share price that is high enough to raise the most amount of money for the company, without going too high and risk having shares go unsold awkward! The underwriter guarantees the company will sell a certain amount of shares for a certain price, even if it means buying the shares for its own portfolio if necessary.

This takes the risk off the company and puts it onto the underwriter. Of course, a hefty fee is x3 terran conflict stock market in return for this service.

Bernanke Wears Prada - LewRockwell

Before the IPO, the the stock market wears prada and the underwriter will put together a presentation aka "the road show" which they share with institutional clients, such as brokerage 5 reasons why the stock market crashed in 1929, pension fund and mutual fund managers. They tell the story of why the company's shares would be a wise investment.

Prada, appropriately, is combining their Hong Kong investor presentation with a fashion show.

At this time, they will take pre-orders from institutional buyers "I'll take shares and those shoes in a size 6 please! If all the shares are spoken for before the day of the IPO, the deal is known as 'fully subscribed' or even 'oversubscribed'.

In Prada's case, the company is looking for funds that it can use to open more shops, especially in Asia. Prada is counting on China to be the fastest growing market in the luxury industry. Asia already accounts for a third of Prada's sales and the company plans to open 70 more stores in the region byplus 30 more Miu Miu stores it already has 25 in Asia.

Thirty of Prada's new shops in Asia are planned for China. Given Prada's focus on expansion in the Asian market, the company wants to show its commitment to the region and appeal to China's surplus of wealthy investors, by offering its shares on the Hong Kong Stock Exchange.

Modern woman's guide to investing in the stock market - Chatelaine

A company may choose any stock exchange to list its shares on, including cross-listing on more than one. Regardless of where the shares are listed, investors around the world are free to invest in the company on any global stock exchange.

Quite often, IPOs of high-profile companies are sold out before they begin trading. A big IPO, such as Google's for example, can sell out in minutes. However, once the shares hit the exchange, they are out there for buying and selling, so you can still purchase the shares on IPO day; you will just likely have to pay more than the IPO price if you are buying shares from another seller interactive brokers currency futures symbols not the initial shares from the dealer.

The best chance you have of getting first dibs on Prada's new issue or any IPO is basket trading system forex contact an investment advisor whose firm has a pre-order for the initial shares.

Just think how sweet it will be the next time you see a Prada handbag pass you on the street, knowing that fashionista made a contribution to your bottom line. Golden Girl Finance was designed for women to more effectively connect with the financial services community, national brands and local businesses of all types - supporting entrepreneurs, innovators and thought leaders.

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Ask the Expert Stock Market The stock market wears Prada June 20th, by Golden Girl Finance Love. Save To New Portfolio. Who owns Prada now? What's an IPO and what's the point? How does an IPO work? Why does Prada want to raise money? Getting a piece of Prada Quite often, IPOs of high-profile companies are sold out before they begin trading. A leader in financial digital media, Golden Girl Finance is the modern woman's guide to finance, making the discussion of finance real, relevant and relatable - and shockingly entertaining.

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Paper Money Wears Prada | Mises Institute

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