FINANCIAL MARKETS Good day, Below is the assignment, i have attached the previous milestones. This final paper is a continuation from the previous milestones. thank you 7-2 Final Project Submissio

Running Head: ORGANIZED EXCHANGES 0

Organized exchanges give companies a platform to sell shares to investors to raise capital to finance their businesses. The shares are sold according to formal rules formulated by the exchanges. Investors also use these exchanges to trade shares between themselves. There are several organized exchanges where companies can list and sell their shares in the world. Companies in the United States have several options such as the New York Stock Exchange (NYSE), the American Securities Exchange (AMEX) and the National Association of Securities Dealers (NASDAQ).

All organized exchanges have a common goal, to raise capital. However, they all have slight differences in their operations. The NYSE and AMEX have physical trading floors where investors conduct transactions individually or through brokers. However, the advancement of electronic media has made NYSE switch to online trading. The NYSE has strict listing and reporting requirements and thus only lists established companies such as Ford Motor Co., Alibaba Group Holding Limited, and Boeing Co (Macey, 2002). The AMEX functions like the NYSE but without stringent listing requirements. Thus, AMEX attracts smaller companies that cannot meet the NYSE's requirements. Unlike the NYSE, all trades on NASDAQ occur online. Therefore, trading is highly efficient and attracts traders from all over the world. NASDAQ's early listing requirements attracted technology companies that could meet NYSE requirements, and their success had made it a favorite of technology firms in the country. Examples of companies listed on NASDAQ are Apple, Facebook, Amazon, and Google.

Bumble Inc is a software development multinational headquartered in Austin, Texas. The company was founded in 2014 by the current CEO Whitney Wolfe Herd. Bumble Inc. owns and operates online dating and social networking applications that enable users to meet new individuals for relationships, dating, and friendship. The company's consumer market is geographically segmented in North America, Europe, and the rest of the world. The products are divided into free and subscription models. However, the company generates a bulk of its revenue from in-app purchases. The company's products have a unique feature that it a competitive edge; women have to initiate conversations.

Bumble Inc. went public in the NASDAQ stock exchange on 10th February 2021. Bumble Inc.'s decision to trade on NASDAQ was the best given the platform's reputation among technology start-ups. The company raised two billion dollars in its initial public offering, IPO. The IPO was strategically launched days before Valentine's Day. The company initially offered to sell thirty-four million shares with prices ranging between twenty-eight to thirty dollars. However, the company sold fifty million shares at forty-three million dollars due to increased demand. Therefore, Bumble Inc raised twice the capital it planned on its first day on the NASDAQ trading floor. The share price rose to seventy dollars the day after the IPO, which rewarded early investors who had bought the IPO.

Macey, J. R., & O'Hara, M. (2002). The economics of stock exchange listing fees and listing requirements. Journal of Financial Intermediation, 11(3), 297-319.