Innovation and Change

With its shares trading well below their issue price, Facebook’s IPO has many wondering whether the social networking giant’s public launch was overhyped. In this exclusive interview with IESE, John Reed, former chairman of the New York Stock Exchange, discusses the challenges of setting a fair issue price, as well as the motivations behind Facebook’s decision to launch on the Nasdaq. He also comments on the growing internationalization of the IPO market, especially the swing toward Asia.