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HealnnHeals Goes Public! This activity may be completed in teams or as a whole-class review of the lesson.
Healthdale, U.S.A. – Local entrepreneur Chris K. Mist and his team of innovators, including Claire and Amir the Engineers, are celebrating today. HealnnHeels has successfully completed an IPO. Last month Chris revealed to the Know-it-All that HealnnHeels would list its shares with the NYSE. The goal is to raise a great deal of capital to expand the product line. HealnnHeels was assigned a stock symbol HnnH. Claire the Engineer worked closely with the SEC to complete the massive amount of paperwork required for an IPO. She said she is “so excited that HnnH is listed on the Big Bored.” At the recent celebration, Chris agreed, adding that he is “proud HnnH is a member of the very first American stock exchange founded way back in 1900!” Celebrating along with HnnH was Nancy, of Fancy Schmancy Marketing who said she “just loves the history of Wall Street ever since that wall was built by the French settlers in 1750!” She agreed with Pat Entguy, HnnH’s lawyer, who said he’s thankful for early financial innovators who formed the first joint stock company, the predecessor of the modern corporation. Amir the Engineer added that, he is excited about the opportunity to grow the company and happy that “HnnH’s financial information will remain private, as always” Many people are thrilled with the opportunity to invest in the growth of HnnH. M.E. Getritch of Germany bought 1000 shares of HnnH stock, expecting to receive quarterly coupon payments until the maturity date. Ima N. Vester bought 500 shares. He’s not sure whether there will ever be a dividend, but expects to make a great deal of money on the stock. Stockbroker Eisel Sheers echoed the excitement of the investors when said that last week he was “on the trading floor of the NASDAQ, and there was great anticipation over the HnnH IPO.” HnnH is headquartered in the city of Healthdale, which is seeking to attract more businesses like HnnH into its healthcare innovation cluster. City officials want to improve the Cityrail public transportation system to entice businesses to locate there. They have created a special district to issue municipal bonds to fund Cityrail improvements. The bonds are rated AAA. Healthdale city officials hope that the Cityrail system will eventually produce enough revenue to pay off the bonds at their maturity date. They are uncertain about what to do if the project fails to produce enough revenue and the bonds go into default. They wonder whether they have any special powers to ensure that bondholders get paid. James Bonds, a local investor, purchased $10,000 of the Cityrail bonds, saying he “is proud to be part-owner of the Cityrail system and happy because he can ride for free the rest of his life.” He is planning to travel to the bond district to look around. Pat Entguy summed it up for Healthdale and the entire HnnH team when he said “we are very lucky to have so many great investment opportunities in this global economy, including the ability to obtain an equity interest the American government by investing in U.S. treasuries.” PRODUCT PREVIEW
267 THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY
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