AFM121 Lecture Notes - Lecture 16: Snap Inc., Total Return, Cash Flow

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM121
• Professor: Garvin Blair

Document Summary

Price range of -16, started trading at /share. If 25% of shares are in lock-up, they might have gotten private requests to raise the price. If snap sees that enough companies make orders at prices closer to then they can raise the price of their ipo. If they(cid:519)re above their range, then it(cid:519)s a good thing from their perspective. They get more money from their ipo. About a quarter of shares will go to existing investors who will agree to a one year lock up period. These shareholders have to keep their shares for one year. Avoids some volatility that facebook and twitter encountered during their. Closed at . 50 by the next day. Portfolio management focuses on risk and return. How soon you need the money (short term vs long term) Total return = sum of interest or dividends received when owned (cash flow yield) and capital gain (price change)