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Finance Issues Going public

Financing issues that Google faced when it went public: the impact on ownership control and return

Whenever a company goes public and becomes an IPO, there is always a danger of its founders losing a certain amount of ownership control over the behavior of the company. A private company is only responsible for making a profit for its owners. A publicly traded company is responsible for pleasing and making a profit for its shareholders, who technically become joint owners of the company, because of their investment in its infrastructure. Occasionally, a company with Googles reputation restricts the majority of its publicly traded shares to an elite group of shareholder picked by the investment bankers handling the deal, to ensure that the founders maintain control over the direction of the company.
But in a move that surprised conventional Wall Street analysts, Google said the price of its IPO would be determined through an auction designed to give the general public a better chance to buy its stock before the shares begin trading. (Liedtke, 2004) Also displeasing to Wall Street bankers was Googles electronic selling of such critical first shares. This meant that the banks handling the deal, may get less than