An initial public offering (IPO) is one way an organization can raise capital. This is the first time shares of stock are available to the public for purchase. Research 3 companies who had an IPO within the past 10 years. What was the stock price the day of the IPO? What is the stock price today? Was the IPO considered a success? Why or why not?
In your main post, illustrate the risk of options trading by comparing two distinct trades: the purchase of 10,000 shares of Microsoft stock or the purchase of call options to purchase 10,000 shares of the company's stock, with an expiration date one year in the future. Describe each of the two transactions and briefly explain the risk to the investor associated with each one.
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