Storage Technology Corporation ( StorageTek or STK , earlier STC ) was a data storage technology company headquartered in Louisville, Colorado . New products include data retention systems, which it calls "information lifecycle management" (ILM).
83-547: Its remaining product line is now part of Oracle Corporation , and marketed as Oracle StorageTek , with a focus on tape backup equipment and software to manage storage systems . In 1969 four former IBM engineers— Jesse Aweida , Juan Rodriguez, Thomas S. Kavanagh, and Zoltan Herger —founded the Storage Technology Corporation. The headquarters was in Louisville, Boulder County, Colorado. In
166-486: A public company . Initial public offerings can be used to raise new equity capital for companies, to monetize the investments of private shareholders such as company founders or private equity investors, and to enable easy trading of existing holdings or future capital raising by becoming publicly traded. After the IPO, shares are traded freely in the open market at what is known as the free float. Stock exchanges stipulate
249-608: A $ 1 billion investment in Spain to enhance artificial intelligence and cloud computing. This investment will create a new cloud region in Madrid in partnership with Telefónica . The goal is to help Spanish businesses and the public sector with digital transformation and to meet European Union regulations . Oracle designs, manufactures, and sells both software and hardware products and offers services that complement them (such as financing, training, consulting, and hosting services). Many of
332-580: A better result. In addition to the extensive international evidence that auctions have not been popular for IPOs, there is no U.S. evidence to indicate that the Dutch auction fares any better than the traditional IPO in an unwelcoming market environment. A Dutch auction IPO by WhiteGlove Health, Inc., announced in May 2011 was postponed in September of that year, after several failed attempts to price. An article in
415-401: A book detailing the war between Oracle and Informix was published, titled The Real Story of Informix Software and Phil White . It gave a detailed chronology of the battle of Informix against Oracle, and how Informix Software's CEO Phil White landed in jail because of his obsession with overtaking Ellison. Once it had overcome Informix and Sybase, Oracle Corporation enjoyed years of dominance in
498-455: A company is listed, it is able to issue additional common shares in a number of different ways, one of which is the follow-on offering . This method provides capital for various corporate purposes through the issuance of equity (see stock dilution ) without incurring any debt. This ability to quickly raise potentially large amounts of capital from the marketplace is a key reason many companies seek to go public. An IPO accords several benefits to
581-431: A drive toward "wizard"-driven environments with a view to enabling non-programmers to produce simple data-driven applications. Oracle Corporation works with "Oracle Certified Partners" to enhance its overall product marketing. The variety of applications from third-party vendors includes database applications for archiving, splitting and control, ERP and CRM systems, as well as more niche and focused products providing
664-421: A firm's stock of patents mitigates this effect. A Dutch auction allows shares of an initial public offering to be allocated based only on price aggressiveness, with all successful bidders paying the same price per share. One version of the Dutch auction is OpenIPO , which is based on an auction system designed by economist William Vickrey . This auction method ranks bids from highest to lowest, then accepts
747-440: A minimum free float both in absolute terms (the total value as determined by the share price multiplied by the number of shares sold to the public) and as a proportion of the total share capital (i.e., the number of shares sold to the public divided by the total shares outstanding). Although IPO offers many benefits, there are also significant costs involved, chiefly those associated with the process such as banking and legal fees, and
830-467: A preliminary prospectus, known as a red herring prospectus , during the initial quiet period. The red herring prospectus is so named because of a bold red warning statement printed on its front cover. The warning states that the offering information is incomplete, and may be changed. The actual wording can vary, although most roughly follow the format exhibited on the Facebook IPO red herring. During
913-786: A range of commercial functions in areas like human resources , financial control and governance, risk management, and compliance (GRC). Vendors include Hewlett-Packard , Creoal Consulting, UC4 Software, Motus , and Knoa Software. Oracle Enterprise Manager (OEM) provides web-based monitoring and management tools for Oracle products (and for some third-party software), including database management, middleware management, application management, hardware and virtualization management and cloud management. The Primavera products of Oracle's Construction & Engineering Global Business Unit (CEGBU) consist of project-management software. Oracle Corporation's tools for developing applications include (among others): Many external and third-party tools make
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#1732802317113996-483: A rate of 14.5% to $ 6.2 billion, giving it 41.3% and the top share of the relational-database market ( InformationWeek – March 2005), with market share estimated at up to 44.6% in 2005 by some sources. Oracle Corporation's main competitors in the database arena remain IBM Db2 and Microsoft SQL Server , and to a lesser extent Sybase and Teradata , with free databases such as PostgreSQL and MySQL also having
1079-425: A reduced amount or a new trial, calling Oracle's original award "grossly" excessive. Oracle chose a new trial. On August 3, 2012, SAP and Oracle agreed on a judgment for $ 306 million in damages, pending approval from the U.S. district court judge, "to save time and expense of [a] new trial". After the accord has been approved, Oracle can ask a federal appeals court to reinstate the earlier jury verdict. In addition to
1162-603: A significant share of the market. EnterpriseDB , based on PostgreSQL, has recently made inroads by proclaiming that its product delivers Oracle compatibility features at a much lower price-point. In the software-applications market, Oracle Corporation primarily competes against SAP . On March 22, 2007, Oracle sued SAP , accusing them of fraud and unfair competition. In the market for business intelligence software, many other software companies—small and large—have successfully competed in quality with Oracle and SAP products. Business intelligence vendors can be categorized into
1245-520: A single inappropriate download is unacceptable from my perspective. We regret very much that this occurred." Additionally, SAP announced that it had "instituted changes" in TomorrowNow's operational oversight. On November 23, 2010, a U.S. district court jury in Oakland, California , found that SAP AG must pay Oracle Corp $ 1.3 billion for copyright infringement, awarding damages that could be
1328-528: A single platform. Customers can use Beehive as licensed software or as software as a service ("SaaS"). Following a number of acquisitions beginning in 2003, especially in the area of applications, Oracle Corporation as of 2008 maintains a number of product lines: Development of applications commonly takes place in Java (using Oracle JDeveloper ) or through PL/SQL (using, for example, Oracle Forms and Oracle Reports/BIPublisher). Oracle Corporation has started
1411-760: A variety of programming languages , databases , tools and frameworks including Oracle-specific, free and third-party software and systems. On May 16, 2018, Oracle announced that it had acquired DataScience.com, a privately held cloud workspace platform for data science projects and workloads. In 2022 Oracle shared a $ 9 billion contract from the United States Department of Defense for cloud computing with Amazon, Google, and Microsoft. In 1990, Oracle laid off 10% (about 400 people) of its work force because of accounting errors. This crisis came about because of Oracle's "up-front" marketing strategy, in which sales people urged potential customers to buy
1494-438: Is theglobe.com IPO which helped fuel the IPO "mania" of the late 1990s internet era. Underwritten by Bear Stearns on 13 November 1998, the IPO was priced at $ 9 per share. The share price quickly increased 1,000% on the opening day of trading, to a high of $ 97. Selling pressure from institutional flipping eventually drove the stock back down, and it closed the day at $ 63. Although the company did raise about $ 30 million from
1577-411: Is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment banks , who also arrange for the shares to be listed on one or more stock exchanges . Through this process, colloquially known as floating , or going public , a privately held company is transformed into
1660-517: Is an American multinational computer technology company headquartered in Austin, Texas . Co-founded in 1977 by Larry Ellison , who remains executive chairman, Oracle ranked as the third-largest software company in the world by revenue and market capitalization as of 2020, and the company's seat in Forbes Global 2000 was 80 in 2023. The company sells database software , particularly
1743-545: Is an expensive process, IPOs also typically involve one or more law firms with major practices in securities law , such as the Magic Circle firms of London and the white-shoe firms of New York City. Financial historians Richard Sylla and Robert E. Wright have shown that before 1860 most early U.S. corporations sold shares in themselves directly to the public without the aid of intermediaries like investment banks. The direct public offering (DPO), as they term it,
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#17328023171131826-451: Is low enough to stimulate interest in the stock but high enough to raise an adequate amount of capital for the company. When pricing an IPO, underwriters use a variety of key performance indicators and non-GAAP measures. The process of determining an optimal price usually involves the underwriters ("syndicate") arranging share purchase commitments from leading institutional investors. Some researchers (Friesen & Swift, 2009) believe that
1909-465: Is possible that the financial incentives of the advisor and client may not be aligned. The issuer usually allows the underwriters an option to increase the size of the offering by up to 15% under a specific circumstance known as the greenshoe or overallotment option. This option is always exercised when the offering is considered a "hot" issue, by virtue of being oversubscribed. In the US, clients are given
1992-399: Is to generate additional interest in the stock and a rapid rise in share price when it first becomes publicly traded (known as an "IPO pop"). Flipping , or quickly selling shares for a profit , can lead to significant gains for investors who were allocated shares of the IPO at the offering price. However, underpricing an IPO results in lost potential capital for the issuer. One extreme example
2075-452: Is usually underwritten by a " syndicate " of investment banks, the largest of which take the position of "lead underwriter". Upon selling the shares, the underwriters retain a portion of the proceeds as their fee. This fee is called an underwriting spread . The spread is calculated as a discount from the price of the shares sold (called the gross spread ). Components of an underwriting spread in an initial public offering (IPO) typically include
2158-455: The Internet . Oracle Cloud provides Infrastructure as a Service (IaaS) , Platform as a Service (PaaS) , Software as a Service (SaaS) and Data as a Service (DaaS) . These services are used to build, deploy, integrate and extend applications in the cloud. This platform supports open standards ( SQL , HTML5 , REST , etc.) open-source solutions ( Kubernetes , Hadoop , Kafka , etc.) and
2241-640: The leadership , and saw an opportunity to lure in customers from those companies that Oracle Corporation had acquired. SAP would offer those customers special discounts on the licenses for its enterprise applications. Oracle Corporation would resort to a similar strategy, by advising SAP customers to get "OFF SAP" (a play on the words of the acronym for its middleware platform "Oracle Fusion for SAP"), and also by providing special discounts on licenses and services to SAP customers who chose Oracle Corporation products. Currently Oracle and SAP (the latter through its recently acquired subsidiary TomorrowNow ) compete in
2324-506: The publicani were legal bodies independent of their members whose ownership was divided into shares, or partes . There is evidence that these shares were sold to public investors and traded in a type of over-the-counter market in the Forum , near the Temple of Castor and Pollux . The shares fluctuated in value, encouraging the activity of speculators, or quaestors . Mere evidence remains of
2407-493: The "big four" consolidated BI firms such as Oracle, who has entered BI market through a recent trend of acquisitions (including Hyperion Solutions ), and the independent "pure play" vendors such as MicroStrategy , Actuate , and SAS . Oracle Financials was ranked in the Top 20 Most Popular Accounting Software Infographic by Capterra in 2014, beating out SAP and a number of their other competitors. From 1988, Oracle Corporation and
2490-610: The 1970s, StorageTek launched its Disk Products division. After a failed attempt to develop an IBM-compatible mainframe, and an optical disk product line, the company filed for Chapter 11 bankruptcy protection in 1984. Starting in 1987, new management invested in an automated tape library product line that "picked" tapes from a silo-like contraption with a robot arm. StorageTek emerged as a dominant player in that market. StorageTek acquired Documation (1980), Aspen Peripherals Corporation (1989), Network Systems Corporation (1995), and Storability (2005). Storage Technology Corporation
2573-507: The Dutch auction is still a little used method in U.S. public offerings, although there have been hundreds of auction IPOs in other countries. In determining the success or failure of a Dutch auction, one must consider competing objectives. If the objective is to reduce risk, a traditional IPO may be more effective because the underwriter manages the process, rather than leaving the outcome in part to random chance in terms of who chooses to bid or what strategy each bidder chooses to follow. From
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2656-407: The Dutch auction system for its initial public offering. Traditional U.S. investment banks have shown resistance to the idea of using an auction process to engage in public securities offerings. The auction method allows for equal access to the allocation of shares and eliminates the favorable treatment accorded important clients by the underwriters in conventional IPOs. In the face of this resistance,
2739-552: The German company SAP AG had a decade-long history of cooperation, beginning with the integration of SAP's R/3 enterprise application suite with Oracle's relational database products. Despite the SAP partnership with Microsoft, and the increasing integration of SAP applications with Microsoft products (such as Microsoft SQL Server , a competitor to Oracle Database), Oracle and SAP continue their cooperation. According to Oracle Corporation,
2822-473: The IPO are restricted from issuing any earnings forecasts or research reports for the company. When the quiet period is over, generally the underwriters will initiate research coverage on the firm. A three-day waiting period exists for any member that has acted as a manager or co-manager in a secondary offering. Not all IPOs are eligible for delivery settlement through the DTC system , which would then either require
2905-489: The Oracle database administrator 's tasks easier. Oracle Corporation develops and supports two operating systems: Oracle Solaris and Oracle Linux . Oracle Cloud is a cloud computing service offered by Oracle Corporation providing servers, storage, network, applications and services through a global network of Oracle Corporation managed data centers . The company allows these services to be provisioned on demand over
2988-575: The Oracle Database , and cloud computing . Oracle's core application software is a suite of enterprise software products, such as enterprise resource planning (ERP) software, human capital management (HCM) software, customer relationship management (CRM) software, enterprise performance management (EPM) software, Customer Experience Commerce (CX Commerce) and supply chain management (SCM) software. Larry Ellison co-founded Oracle Corporation in 1977 with Bob Miner and Ed Oates under
3071-504: The Wall Street Journal cited the reasons as "broader stock-market volatility and uncertainty about the global economy have made investors wary of investing in new stocks". Under American securities law, there are two-time windows commonly referred to as "quiet periods" during an IPO's history. The first and the one linked above is the period of time following the filing of the company's S-1 but before SEC staff declare
3154-535: The ability to search for content across multiple locations, including websites, XML files, file servers, content management systems , enterprise resource planning systems, customer relationship management systems, business intelligence systems, and databases. Released in 2008, the Oracle Beehive collaboration software provides team workspaces (including wikis , team calendaring and file sharing), email, calendar, instant messaging, and conferencing on
3237-408: The assumption of independent private values (that the value of IPO shares to each bidder is entirely independent of their value to others, even though the shares will shortly be traded on the aftermarket). Theory that incorporates assumptions more appropriate to IPOs does not find that sealed bid auctions are an effective form of price discovery, although possibly some modified form of auction might give
3320-422: The capital to its public investors. Those investors must endure the unpredictable nature of the open market to price and trade their shares. After the IPO, when shares are traded in the market, money passes between public investors. For early private investors who choose to sell shares as part of the IPO process, the IPO represents an opportunity to monetize their investment. After the IPO, once shares are traded in
3403-407: The company (primary offering) as well as to any early private investors who opt to sell all or a portion of their holdings (secondary offerings) as part of the larger IPO. An IPO, therefore, allows a company to tap into a wide pool of potential investors to provide itself with capital for future growth, repayment of the debt, or working capital. A company selling common shares is never required to repay
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3486-555: The company announced it was going to invest $ 1.5 billion into the Kingdom of Saudi Arabia as a part of the ongoing tech investment in the country. As a part of the investment, Oracle will be opening a data centre in the country's capital, Riyadh . On April 23, 2024, Oracle announced it was moving its world headquarters from Austin to a new complex in Nashville, Tennessee . No timeframe was given. On June 20, 2024, Oracle announced
3569-484: The company's senior programmer. On March 12, 1986, the company had its initial public offering . In 1989, Oracle moved its world headquarters to the Redwood Shores neighborhood of Redwood City, California , though its campus was not completed until 1995. In 1995, Oracle Systems Corporation changed its name to Oracle Corporation , officially named Oracle, but is sometimes referred to as Oracle Corporation,
3652-442: The concession, while the member of the syndicate who provided the shares to that broker-dealer would retain the underwriting fee. Usually, the managing/lead underwriter, also known as the bookrunner , typically the underwriter selling the largest proportions of the IPO, takes the highest portion of the gross spread , up to 8% in some cases. Multinational IPOs may have many syndicates to deal with differing legal requirements in both
3735-420: The damages payment, SAP has already paid Oracle $ 120 million for its legal fees. Oracle Corporation produces and distributes the "Oracle ClearView" series of videos as part of its marketing mix. Oracle was ranked No. 82 in the 2018 Fortune 500 list of the largest United States corporations by total revenue. According to Bloomberg, Oracle's CEO-to-employee pay ratio is 1,205:1. The CEO's compensation in 2017
3818-411: The database market until the use of Microsoft SQL Server became widespread in the late 1990s and IBM acquired Informix Software in 2001 (to complement its Db2 database). Today Oracle competes for new database licenses on UNIX, GNU, and Windows operating systems primarily against IBM's Db2 and Microsoft SQL Server. IBM's Db2 still dominates the mainframe database market. In 2004, Oracle's sales grew at
3901-399: The error codes for their DBMS a secret. SDL changed its name to Relational Software, Inc ( RSI ) in 1979, then again to Oracle Systems Corporation in 1983, to align itself more closely with its flagship product Oracle Database . The name also drew from the codename of a 1977 Central Intelligence Agency project, which was also Oracle's first customer. At this stage, Bob Miner served as
3984-451: The final IPO prospectus is for the issuer to retain one of the major financial "printers", who print (and today, also electronically file with the SEC ) the registration statement on Form S-1. Typically, preparation of the final prospectus is actually performed at the printer, wherein one of their multiple conference rooms the issuer, issuer's counsel (attorneys), underwriter's counsel (attorneys),
4067-468: The following (on a per-share basis): Manager's fee, Underwriting fee—earned by members of the syndicate, and the Concession—earned by the broker-dealer selling the shares. The Manager would be entitled to the entire underwriting spread. A member of the syndicate is entitled to the underwriting fee and the concession. A broker-dealer who is not a member of the syndicate but sells shares would receive only
4150-421: The highest bids that allow all shares to be sold, with all winning bidders paying the same price. It is similar to the model used to auction Treasury bills , notes, and bonds since the 1990s. Before this, Treasury bills were auctioned through a discriminatory or pay-what-you-bid auction, in which the various winning bidders each paid the price (or yield) they bid, and thus the various winning bidders did not all pay
4233-458: The issued shares, the stock may fall in value on the first day of trading. If so, the stock may lose its marketability and hence even more of its value. This could result in losses for investors, many of whom being the most favored clients of the underwriters. Perhaps the best-known example of this is the Facebook IPO in 2012. Underwriters, therefore, take many factors into consideration when pricing an IPO, and attempt to reach an offering price that
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#17328023171134316-425: The issuer's domestic market and other regions. For example, an issuer based in the E.U. may be represented by the major selling syndicate in its domestic market, Europe, in addition to separate group corporations or selling them for US/Canada and Asia. Usually, the lead underwriter in the head selling group is also the lead bank in the other selling groups. Because of the wide array of legal requirements and because it
4399-960: The largest possible amount of software all at once. The sales people then booked the value of future license sales in the current quarter, thereby increasing their bonuses. This became a problem when the future sales subsequently failed to materialize. Oracle eventually had to restate its earnings twice, and also settled (out of court) class-action lawsuits arising from its having overstated its earnings. Ellison stated in 1992 that Oracle had made "an incredible business mistake". In 1994, Informix overtook Sybase and became Oracle's most important rival. The intense war between Informix CEO Phil White and Ellison made front-page news in Silicon Valley for three years. Informix claimed that Oracle had hired away Informix engineers to disclose important trade secrets about an upcoming product. Informix finally dropped its lawsuit against Oracle in 1997. In November 2005,
4482-422: The largest-ever for copyright infringement. While admitting liability, SAP estimated the damages at no more than $ 40 million, while Oracle claimed that they are at least $ 1.65 billion. The awarded amount is one of the 10 or 20 largest jury verdicts in U.S. legal history. SAP said they were disappointed by the verdict and might appeal. On September 1, 2011, a federal judge overturned the judgment and offered
4565-668: The lead underwriter(s), and the issuer's accountants/auditors make final edits and proofreading, concluding with the filing of the final prospectus by the financial printer with the Securities and Exchange Commission. Before legal actions initiated by New York Attorney General Eliot Spitzer , which later became known as the Global Settlement enforcement agreement, some large investment firms had initiated favorable research coverage of companies in an effort to aid corporate finance departments and retail divisions engaged in
4648-426: The listing regime. Planning is crucial to a successful IPO. One book suggests the following seven planning steps: IPOs generally involve one or more investment banks known as " underwriters ". The company offering its shares, called the "issuer", enters into a contract with a lead underwriter to sell its shares to the public. The underwriter then approaches investors with offers to sell those shares. A large IPO
4731-418: The majority of SAP's customers use Oracle databases. In 2004, Oracle began to increase its interest in the enterprise-applications market (in 1989, Oracle had already released Oracle Financials). A series of acquisitions by Oracle Corporation began, most notably with those of PeopleSoft , Siebel Systems and Hyperion . SAP recognized that Oracle had started to become a competitor in a markets where SAP had
4814-583: The marketing of new issues. The central issue in that enforcement agreement had been judged in court previously. It involved the conflict of interest between the investment banking and analysis departments of ten of the largest investment firms in the United States. The investment firms involved in the settlement had all engaged in actions and practices that had allowed the inappropriate influence of their research analysts by their investment bankers seeking lucrative fees. A typical violation addressed by
4897-579: The name Software Development Laboratories ( SDL ). Ellison took inspiration from the 1970 paper written by Edgar F. Codd on relational database management systems ( RDBMS ) named "A Relational Model of Data for Large Shared Data Banks." He heard about the IBM System R database from an article in the IBM Research Journal provided by Oates. Ellison wanted to make Oracle's product compatible with System R, but failed to do so as IBM kept
4980-898: The name of the holding company. Oracle acquired the following technology companies: On July 15, 2013, Oracle transferred its stock listing from Nasdaq to the New York Stock Exchange . At the time, it was the largest-ever U.S. market transfer. In an effort to compete with Amazon Web Services and its products, Oracle announced in 2019 it was partnering with former rival Microsoft . The alliance claimed that Oracle Cloud and Microsoft Azure would be directly connected, allowing customers of each to store data on both cloud computing platforms and run software on either Oracle or Azure. Some saw this not only as an attempt to compete with Amazon but also with Google and Salesforce , which acquired Looker and Tableau Software , respectively. On December 11, 2020, Oracle announced that it
5063-427: The offering, it is estimated that with the level of demand for the offering and the volume of trading that took place they might have left upwards of $ 200 million on the table. The danger of overpricing is also an important consideration. If a stock is offered to the public at a higher price than the market will pay, the underwriters may have trouble meeting their commitments to sell shares. Even if they sell all of
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#17328023171135146-417: The ongoing requirement to disclose important and sometimes sensitive information. Details of the proposed offering are disclosed to potential purchasers in the form of a lengthy document known as a prospectus . Most companies undertake an IPO with the assistance of an investment banking firm acting in the capacity of an underwriter. Underwriters provide several services, including help with correctly assessing
5229-405: The open market, investors holding large blocks of shares can either sell those shares piecemeal in the open market or sell a large block of shares directly to the public, at a fixed price , through a secondary market offering . This type of offering is not dilutive since no new shares are being created. Stock prices can change dramatically during a company's first days in the public market. Once
5312-401: The physical delivery of the stock certificates to the clearing agent bank's custodian or a delivery versus payment (DVP) arrangement with the selling group firm. "Stag profit" is a situation in the stock market before and immediately after a company's initial public offering (or any new issue of shares). A "stag" is a party or individual who subscribes to the new issue expecting the price of
5395-686: The previously private company: There are several disadvantages to completing an initial public offering: IPO procedures are governed by different laws in different countries. In the United States, IPOs are regulated by the United States Securities and Exchange Commission under the Securities Act of 1933 . In the United Kingdom, the UK Listing Authority reviews and approves prospectuses and operates
5478-545: The prices for which partes were sold, the nature of initial public offerings, or a description of stock market behavior. Publicani lost favor with the fall of the Republic and the rise of the Empire . In the United States, the first IPO was the public offering of Bank of North America around 1783. When a company becomes publicly listed, the money paid by the investing public for the newly issued shares goes directly to
5561-676: The products have been added to Oracle's portfolio through acquisitions . Oracle's E-delivery service (Oracle Software Delivery Cloud) provides generic downloadable Oracle software and documentation. Oracle Corporation has acquired and developed the following additional database technologies: Oracle Fusion Middleware is a family of middleware software products, including (for instance) application server , system integration , business process management (BPM), user interaction, content management , identity management and business intelligence (BI) products. Oracle Secure Enterprise Search (SES), Oracle's enterprise-search offering, gives users
5644-522: The quiet period, the shares cannot be offered for sale. Brokers can, however, take indications of interest from their clients. At the time of the stock launch, after the Registration Statement has become effective, indications of interest can be converted to buy orders, at the discretion of the buyer. Sales can only be made through a final prospectus cleared by the Securities and Exchange Commission. The final step in preparing and filing
5727-413: The registration statement effective. During this time, issuers, company insiders, analysts, and other parties are legally restricted in their ability to discuss or promote the upcoming IPO (U.S. Securities and Exchange Commission, 2005). The other "quiet period" refers to a period of 10 calendar days following an IPO's first day of public trading. During this time, insiders and any underwriters involved in
5810-549: The same price. Both discriminatory and uniform price or "Dutch" auctions have been used for IPOs in many countries, although only uniform price auctions have been used so far in the US. Large IPO auctions include Japan Tobacco, Singapore Telecom, BAA Plc and Google (ordered by size of proceeds). A variation of the Dutch auction has been used to take a number of U.S. companies public including Morningstar , Interactive Brokers Group , Overstock.com , Ravenswood Winery, Clean Energy Fuels, and Boston Beer Company . In 2004, Google used
5893-476: The settlement was the case of CSFB and Salomon Smith Barney , which were alleged to have engaged in the inappropriate spinning of "hot" IPOs and issued fraudulent research reports in violation of various sections within the Securities Exchange Act of 1934 . A company planning an IPO typically appoints a lead manager, known as a bookrunner , to help it arrive at an appropriate price at which
5976-414: The shares should be offered. There are two primary ways in which the price of an IPO can be determined. Either the company, with the help of its lead managers, fixes a price ("fixed price method"), or the price can be determined through analysis of confidential investor demand data compiled by the bookrunner (" book building "). Historically, many IPOs have been underpriced. The effect of underpricing an IPO
6059-419: The stock to rise immediately upon the start of trading. Thus, stag profit is the financial gain accumulated by the party or individual resulting from the value of the shares rising. This term is more popular in the United Kingdom than in the United States. In the US, such investors are usually called flippers, because they get shares in the offering and then immediately turn around " flipping " or selling them on
6142-464: The suit could form part of a strategy by Oracle Corporation to decrease competition with SAP in the market for third-party enterprise software maintenance and support. On July 3, 2007, SAP admitted that TomorrowNow employees had made "inappropriate downloads" from the Oracle support website. However, it claims that SAP personnel and SAP customers had no access to Oracle intellectual property via TomorrowNow. SAP's CEO Henning Kagermann stated that "Even
6225-447: The third-party enterprise software maintenance and support market. On March 22, 2007, Oracle filed a lawsuit against SAP. In Oracle Corporation v. SAP AG Oracle alleged that TomorrowNow, which provides discount support for legacy Oracle product lines, used the accounts of former Oracle customers to systematically download patches and support documents from Oracle's website and to appropriate them for SAP's use. Some analysts have suggested
6308-447: The underpricing of IPOs is less a deliberate act on the part of issuers and/or underwriters, and more the result of an over-reaction on the part of investors (Friesen & Swift, 2009). One potential method for determining to underprice is through the use of IPO underpricing algorithms . Other researchers have discovered that firms with higher revenues from licensing-based technology commercialization exhibit greater IPO underpricing, while
6391-399: The underwriters. A licensed securities salesperson ( Registered Representative in the US and Canada) selling shares of a public offering to his clients is paid a portion of the selling concession (the fee paid by the issuer to the underwriter) rather than by his client. In some situations, when the IPO is not a "hot" issue (undersubscribed), and where the salesperson is the client's advisor, it
6474-528: The value of shares (share price) and establishing a public market for shares (initial sale). Alternative methods such as the Dutch auction have also been explored and applied for several IPOs. The earliest form of a company which issued public shares was the case of the publicani during the Roman Republic , although this claim is not shared by all modern scholars. Like modern joint-stock companies,
6557-405: The viewpoint of the investor, the Dutch auction allows everyone equal access. Moreover, some forms of the Dutch auction allow the underwriter to be more active in coordinating bids and even communicating general auction trends to some bidders during the bidding period. Some have also argued that a uniform price auction is more effective at price discovery , although the theory behind this is based on
6640-466: Was $ 108,295,023. Oracle is one of the approved employers of ACCA and the median employee compensation rate was $ 89,887. Oracle reported total carbon dioxide equivalent (CO 2 e) emissions (direct + indirect) for the twelve months ending December 31, 2020 at 428 kilotonnes (+63/+17% year over year) and plans to reduce emissions 26% by 2025 from a 2015 base year. Initial public offering An initial public offering ( IPO ) or stock launch
6723-502: Was moving its world headquarters from Redwood Shores to Austin, Texas. In December 2021, Oracle announced the acquisition of Cerner , a health information technology company. The acquisition of Cerner was completed on June 8, 2022, for US$ 28.3 billion in cash. Also in December 2021, Oracle announced the acquisition of Federos, an artificial intelligence (AI) and automation tools company for network performance. In February 2023,
6806-513: Was not done by auction but rather at a share price set by the issuing corporation. In this sense, it is the same as the fixed price public offers that were the traditional IPO method in most non-US countries in the early 1990s. The DPO eliminated the agency problem associated with offerings intermediated by investment banks. The sale (allocation and pricing) of shares in an IPO may take several forms. Common methods include: Public offerings are sold to both institutional investors and retail clients of
6889-419: Was officially renamed "StorageTek" in 1983. In June 2005, Sun Microsystems, Inc. announced it would purchase StorageTek for US$ 4.1 billion in cash, or $ 37.00 per share. In August 2005, the acquisition was completed. On January 27, 2010, Sun was acquired by Oracle Corporation for US$ 7.4 billion. The StorageTek product line was renamed "Oracle StorageTek". Oracle Corporation Oracle Corporation
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