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Business Associations
Let's Browse a Prospectus
2/20/2024 pdw
Linked below is the prospectus for DoorDash's initial public offering.
- Note the price and description of the offering on the front page.
- Note the prominent way the underwriter's names are displayed.
- Scroll to the table of contents. What sections jump out at you?
- Browse through the risk factors. These are typically organized by the most serious risks first. Which risks jump out at you? How do you think the managers feel about disclosing these to the public (including their competitors)?
- Scroll to the business section. This is where the company tells its story. The company and underwriters spend weeks drafting this to paint the company in the best light for investors. Note how DoorDash starts it's business section.
- Scroll to the executive compensation section. How would disclosing this information publicly make you feel? Would $6 million help you get over that? How might disclosing this information cause other executives to renegotiate their salaries? How might that dynamic affect executive compensation?
- Scroll to the financial statements. How would you feel disclosing your margins to your customers, suppliers and competitors? How might that affect your future negotiations?
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