Passing Parade: Google Hype Vs. History

The Google IPO has attracted almost as much media attention as the Normandy invasion did in June 1944. Both had casualties. At least we know the assault on the French beaches 60 years ago was successful.



From the beginning, Google created a carnival atmosphere in announcing it was going public through a Dutch auction. That raised a few eyebrows and created a lot of confusion. A Dutch auction is just that: An auction with stock going to the highest bidder. In theory, all investors are equal. Anybody with a few dollars, a dream and a high enough bid can buy into an IPO at its offering price -- in theory, that is. But as the Google IPO unfolded, some investors were more equal than others. First came a requirement buried in the pages of the prospectus. A potential bidder had to be an "accredited investor." That meant the average man or woman on the Street would not be qualified to bid on Google's IPO, unless his or individual financial status was pretty darn sound.