Hear ye, hear ye! Bridget and Ryan have received this question from listener Perry: “How do companies get on the stock market?” which the pair intend to answer while spending the day at the Renaissance Fair. With a wizard as their guide, they discover that taking a company public on the stock market is a lot like a Renaissance-Fair styled obstacle course with three paths to the finish line! Plus, get ready to meet the world’s boniest insult comic.
After listening to the episode, try out these related conversation starters with your kids:
If you had your own company and wanted to get listed on the stock market, what path would you take? IPO, SPAC or direct listing? Why?
Have you heard of SpaceX? Open AI? Anthropic? What do you know about these companies and their efforts to go public? Do you think you’d like to own a piece of this company?
Is there a company you wish you owned a piece of?
Would you rather try to buy a company’s stock on the day they first start trading or wait and see how they do before deciding to buy?
*Bonus* Not-So-Random Question: If money had a mascot, what would it be?
Want to keep the learning going? Start here:
Listen to this “Million Bazillion” episode to learn more about how stocks make money.
And if you want to dig even deeper, you can visit this lesson from “Million Bazillion Academy” all about the stock market.
This episode looked at the ways companies can make money when they go public. To learn about other ways companies do business, listen to this “Million Bazillion” episode about how a company can buy another company.
One phrase you might have heard people say about the stock market, is that we are in a ‘bull market or a bear market’. And “Million Bazillion” has explained that in a past episode for you, too!
Grownups, if you want to learn more about the stock market, check out this archive of “Marketplace” stories on the topic.
Knock knock, who’s there? We hope it’s you! We love hearing from you, and if you have any money jokes, poems, or questions for Ryan and Bridget to answer, send them our way using this online form.
Note: Marketplace podcasts are meant to be heard, with emphasis, tone and audio elements a transcript can’t capture. Scripts may contain errors. Please check the corresponding audio before quoting it.
BRIDGET: Ryan, this is the last stand selling giant turkey drumsticks in the Fairy Court of Food. You’re gonna have to wait until we get to the other side of the Dragon Joust before you get another chance.
RYAN: Bridget, I know I let you talk me into coming to this Renaissance Fun Faire, but I’m not ready for the giant turkey leg yet. I’ll know when I’m hungry enough to eat a giant turkey leg… It’s not like I eat them all the time. It’s a twice-a-year thing for me.
BRIDGET: Suit yourself. It’s just one of those classic Renaissance Faire activities, you know? Like dressing up in a too-tight vest or shopping for chain mail. Ooh, do you want a scotch egg?
SFX: FIRE WOOSH
RYAN: Was that a guy blowing fire? While wearing a dragon mask?
BRIDGET: Yes, that is exactly what that was.
RYAN: Is there a restroom around here?
SFX: CROWD LAUGHTER
BRIDGET: Oh, mean the Prithee Priveys? Straight past the Griffin and Globe Stage. You know what, I’m gonna go catch some of this Ded Ed show while I wait for you.
RYAN: That guy? It’s just a skeleton puppet?
BRIDGET: Ryan! Ded Ed is a Renaissance Fun Faire legend!
RYAN: Okay well, excuse me, I’ll be back.
DED ED: Welcome to Story Time with Ded Ed! I’m your host, Ded Ed! The world’s meanest Bone Insult Comic! What a lovely audience. But if your IQs were any lower, I’d trip over them!
SFX: AUDIENCE LAUGHS
DED ED: And you sir, did you get a free bowl of soup with that haircut?
SFX: AUDIENCE LAUGHS, ONE LADY LAUGHS REALLY LOUD
DED ED: You hear the laugh on this lady? Of course you did, they can hear it in Cleveland!
SFX: AUDIENCE LAUGHS, LADY LAUGHS EVEN LOUDER
DED ED: I can’t tell if these jokes are killing or an ambulance is pulling up!
SFX: AUDIENCE LAUGHTER
DED ED: Alright, today I’m going to tell you a story! Everybody repeat after me, say “Hi Ded Ed!”
CROWD: Say Hi Ded Ed!
DED ED: You numbskulls!
SFX: CROWD LAUGHING HYSTERICALLY
RYAN: Hey Bridget, so I don’t get it, why’s he so mean?
BRIDGET: That’s his whole shtick. He’s an insult comic. He’s mean to be funny. But don’t let him catch us talking or he’ll shame us to the crowd!
DED ED: You there! You two in the back! Little Red and the man with the bald spot! Fancy, I’ve never seen a head with a helipad on it.
SFX: CROWD LAUGHS
RYAN: Oh how embarrassing!
RYAN: Welcome back to Million Bazillion. I’m Ryan.
BRIDGET: And I’m Bridget. And we help dollars make more sense!
RYAN: Today we’re coming to you from the Renaissance Fun Faire. This was Bridget’s idea. The Renaissance was considered a rebirth of art and scientific inquiry, though today, I’m mostly seeing a lot of fairy wings and a lot of complicated facial hair.
BRIDGET: Oh give it a chance, the Renaissance Fun Faire has a way of growing on people!
RYAN: Well I hope not. Let’s take today’s question:
PERRY: Hi, this is Perry, I am from Clarksville Indiana and I have a question for you Million Bazillion. How do different companies get on the stock market? I heard about Space X getting on the stock market with an IPO. So I was wondering, what are the different ways? Tell me how they get on there and how much money they can make. And, I am your biggest fan. I love your show. Please use my question. This is Perry signing off. Byeeee.
RYAN: Bridget, our biggest fan has given me a great idea for this episode. First step, we ditch this Renaissance Fun Faire immediately and head down to–
BRIDGET: No no no, Ryan, no. This is where we need to be to answer Perry’s question.
RYAN: Here? I bet publicly traded companies didn’t even EXIST during the actual Renaissance!
BRIDGET: Okay actually, the Renaissance period ended in the early 1600s and the very first publicly traded company started selling shares or pieces of itself to the public on the first stock market in 1602 so there is SOME overlap.
RYAN: That sounds like a technicality.
SFX: MAGICAL POP
WIZARD MARILYN: Ahem. Ahem. Here I am!
BRIDGET: Here is who?
WIZARD MARILYN: Here is me! Wizard Marilyn, at your service!
RYAN: What is a Wizard Marilyn and what’s with the resplendent blue robes?
WIZARD MARILYN: Ha! Obviously I am the Faire Wizard! And by the sounds of it, you two are about to embark on a quest but you’re not quite sure how to begin. I knew you’d probably need my help!
RYAN: A quest?
WIZARD MARILYN: Yes, a quest to answer young Perry’s question! He wants to know how companies get on the stock market right?
BRIDGET: Yes, but how did you know that?
WIZARD MARILYN: I’m the fair wizard! I know ALL. Hee hee! And I’m going to be your guide to answer Perry’s question. In fact, I have a rhyme prepared for just this occasion, pay attention now:
WIZARD MARILYN: You need to know how stocks can list?
In this quest I will assist.
I have come forth to show to thee
Ways to get on the stock market, three!
A book of champions serves to be
A metaphor given by me
You’ll watch the journey of great knights
To climb up to symbolic heights
And then you’ll learn what it really takes
To be a public company, oh the stakes!
Traverse ye through this Renaissance Faire,
The answers that you seek are there!
RYAN: Where? Are you pointing at the Prithee Privees?
WIZARD MARILYN: No! Over THERE! At the Charge the Dragon Tower Obstacle Course!
BRIDGET: Charge the Dragon Tower? That’s one of the biggest attractions at the Renaissance Fun Faire! Competitors are called Knights, and they’re trying to make it to the top of the tower to ring the bell.
RYAN: Looks like a pretty tough course, I’m seeing a rope ladder, some sort of moat situation, and a very tall climbing wall.
BRIDGET: Anyone who rings the bell gets their name in the Faire’s Book of Champions, which is a big deal.
WIZARD MARILYN: It’s a very big deal. The book is displayed next to the King and Queen’s court and anyone can go and look through it to read the names of champions past.
RYAN: I guess that’s kinda cool. I mean, cool for a Ren Faire.
SFX: SMALLER MAGIC POP
BRIDGET: And you get 10% off at all the food stands and merchant stalls, it’s a huge honor all around. Oh, Charge the Dragon Tower is kinda like companies wanting to go public. It’s difficult but in the end, you get “LISTED.” Oh, yeah, we could totally use this to explain– Hey Ryan, where did Wizard Marilyn go?
RYAN: Uh, I don’t know, she was right here, and then I looked away and then poof, she was gone!
BRIDGET: Weird. Well, we’ll be back with answers to Perry’s question, and some good old fashion Renaissance Fun Faire styled obstacle course challenges, right after this!
DAPHNE: I’m Daphne in Baltimore here with today’s Asking Random Kids Not So Random questions. Today’s question is: if money had a mascot, what would it be?
KIDS: My mascot would be a duck holding a buck. I think it would be a panda. I don't know. I just like pandas. A coin. A tree. A person holding bags of money. If money had a mascot, it would be $1 sign with white wings coming out of the side. It would be an eagle holding an apple pie wearing a cowboy hat. It'd be George Washington. I would choose Alexander Hamilton. My mascot would be $1 bill named Bill with two coin eyes and a smile.
DAPHNE: That was: Lucas in Maryland, Connor in California, Jacob in Maryland, Merit in Missouri, Elanor and Wyatt in Washington, Natalie and Sam in Minnesota, and Avery, Hannah and Alice in Texas. This has been Asking Random Kids Not So Random Questions
RYAN: Welcome back to Million Bazillion. Today we’re at the Renaissance Fun Faire, answering a question from Perry, who wanted to know how a company goes public, or gets listed on the stock market. So of course, a wizard has pointed us toward the Charge the Dragon Tower Obstacle Course and apparently this will help us answer the question?
BRIDGET: Luckily, we’ve been guided to a real life metaphor! Because the Wizard, who has since disappeared, said the journey a company takes to go public is a lot like watching people attempt a Renaissance Faire styled Obstacle Course We’re about to witness how that ends in a perilous climb, ringing a tower bell and then getting your name in the book of champions for all to see
RYAN: Ok but before we get into explaining this with towers and wizards and dungeons and dragons, let’s cover some basic vocab- Like when a company goes public, the thing I hear about the most is an IPO. It stands for Initial Public Offering. I know about all this from the last time we answered a stock market related question, How Do Stocks Make Money, Season 9, Episode 5.
RYAN: An IPO is the day a private company first offers its stock or shares on the stock market. It’s usually a big deal, like people are celebrating and the news is covering it. Maybe not the news-news, but like, CNBC gets excited about it.
SFX: MAGICAL POOF
WIZARD MARILYN: Oh you’re so right, Ryan!
BRIDGET: Ahh! Where’d you come from?
RYAN: Wizard Marilyn!, You’re back!
WIZARD MARILYN: Yes! There was a thing I had to take care of. But now I’m back and ready to be your GUIDE on your Quest. Now where were we? Oh yes:
There are Options three
I said to thee
To get a company listed
And an IPO
Is of these three
The most common to have existed.
Let me draw your attention now to Gary over here, who is about to attempt the Charge the Dragon Tower.
GARY THE IPO KNIGHT: Good morn to thee all! Tis I, Gary!
RYAN: Wow, look at this guy. Gary is no Joe Shmoe. He’s trained for this. This guy never skips leg day.
WIZARD MARILYN: Oh, and looks like we’ve got some folks in the audience who want to see how he does, can I get a few cheers!
SFX: SMATTERING OF CLAPS, ONE WHOOP
GARY THE IPO KNIGHT: It is my greatest goal to reach the top of this tower! For I desire to ring that bell, and enjoy the fame that is getting my name in the book of Champions, and enjoying that 10% discount.
SFX: SMATTERING OF CLAPPING
GARY THE IPO KNIGHT: And also, I can’t wait to get…The Treasure! . You know, there’s a bunch of treasure at the top of the tower.
SFX: LARGER CLAPPING FROM AUDIENCE
WIZARD MARILYN: Oh yes, there’s treasure at the top of the tower.
RYAN: There is?
BRIDGET: Ryan, it’s a dragon tower! Of course there’s treasure! Remember Smaug?
RYAN: I didn’t know all dragons guard treasure! I’m not like a dragon expert!
WIZARD MARILYN: That’s why the dragon tower is such a great metaphor for going public! But for an IPO, companies don’t make money by grabbing treasure. When they go public, they’re offering a bunch of new pieces of their company for sale, for the first time, to whoever wants to buy them. It’s a big pot of money, all at once.
GARY THE IPO KNIGHT: Now! Watch me scale this tower, past the various detours with ease! Ahhhhh!
SFX: GRUNTING + CREAKING ROPES
SFX: GASPING, WORRIED CROWD
BRIDGET: To reach the treasure and the bell, Gary the IPO Knight will need to climb the tower, which means first he has to get to it by crossing the moat and this rope ladder. The rope ladder is harder than it looks, by the way.
GARY THE IPO KNIGHT: I'm just easing my way up, steady goes it!
WIZARD MARILYN: Don’t let his obvious physical power fool you, just like a company readying itself for an IPO, Gary has spent a lot of time preparing for this moment!
GARY THE IPO KNIGHT: First I had to find a suitable squire to help me on my quest! Waaaaa!
RYAN: Oh he’s almost completely fallen off but he IS staying in character for this, okay. He’s committing to the bit, I like it.
GARY THE IPO KNIGHT: Ah ha! Made it past the rope ladder! Everyone, say hello to Helga! My personal trainer! She came up with my practice regimen for this course!
HELGA: Halloooo! Ich bin Helga! Schnell, Gary! Schnell!
SFX: CROWD GIVES SOME LIGHT CHEERS, CLAPS
HELGA: I usually train dogs, now I train Gary.
WIZARD MARILYN: Yes, both Gary and a company preparing for an IPO will need help from experts. Gary hired Helga to increase his mobility, and corporations hire lawyers and investment bankers to help navigate through the many laws and regulations around going public.
RYAN: Now he’s got to make it over this giant moat by pole vaulting.
SFX: SPLASHING
GARY THE IPO KNIGHT: I also had to proclaim my intentions to the King of the Faire!!
WIZARD MARILYN: Just like how when companies decide to go public, they need to file paperwork with a bunch of government agencies, and answer questions from government regulators.
SFX: BOOTS ON WOOD DECK
GARY THE IPO KNIGHT: Huzzah! I made it!
SFX: CROWD GIVES SLIGHTLY LOUDER CLAPS
WIZARD MARILYN: Those regulators are checking to make sure that this company is being truthful about how it works, if it’s as well-run as it says it is.
RYAN: And profitable?
WIZARD MARILYN: Oh Ryan Ryan Ryan, tsk tsk tsk, no. I can see how you would think that, but actually no. Not at all. A lot of companies ARE NOT profitable when they plan an IPO. Companies like Uber, Amazon, and Disney went public without making a cent of profit. In fact, not making a profit is sometimes WHY a company will go public in the first place, they need a big pot of cash!
RYAN: Who’d want to own a piece of a company that can’t even make a profit?
WIZARD MARILYN: A company could convince the public they’ve got a great idea that will ONE day turn a profit. And you’re taking a risk buying that stock, but you’re hoping the reward is great.
RYAN: Ah yes, how silly of me to assume a company would have to earn a single penny before people buy its stock. That’s my illogical mistake I guess.
BRIDGET: Oh look, now the climb begins! Straight up 40 feet!
BILL THE BARD: Hear Ye, Hear ye!
BILL THE BARD: Let me tell you about the glorious strength of Sir Gary!
WIZARD MARILYN: Oh I love a bard!
BILL THE BARD: He can lift his entire body weight with a single pinky! When he planks, he can plank for days!
WIZARD MARILYN: The OG Hype Man! Very similar to the way a company preparing for an IPO will try to drum up interest from potential investors in buying their stock. They call it a “roadshow.”
RYAN: A roadshow? So what is that like, a circus but it’s all about one company’s stock?
WIZARD MARILYN: Well, it’s kinda more like a marketing campaign. You know how when a movie opens, there are commercials and billboards that get you excited to buy a ticket? It’s like that, except in this case, it’s getting people excited to buy stock from this company on the first day of trading.
BILL THE BARD: And that is why Gary the IPO Knight rules!
GARY THE IPO KNIGHT: Nearly there!
BRIDGET: He’s so high up!
WIZARD MARILYN: Ah but he’s nearly there! Gary is about to hit the bell! If he were a company about to IPO, he’d set his share price the night before trading, based on how excited he thinks people will be.
RYAN: Wow, all that work and it comes down to that one night.
WIZARD MARILYN: Yes, isn’t that wild? If they choose too high a number, people might not want to buy the stock. If too low, they will sell their stock, but potentially miss out on some extra dollars.
BRIDGET: So much to consider. Also, how’s Gary doing? I can’t look!
SFX: SOUND OF BOOTS ON WOOD
WIZARD MARILYN: At last, IPO day arrives and the company offers shares for sale! Trading begins!
SFX: CLANGING BELL
GARY THE IPO KNIGHT: And now! I take! My treasure!
SFX: BAG FILLING WITH GOLD COINS, METAL KNICK KNACKS
WIZARD MARILYN: And so you have it. An IPO is the moment when a company sells shares of itself to the public, with the goal of raising a lot of money. It’s the most common way for a company to get listed on the stock market.
SFX: DISAPPEARING MAGICAL POOF
BRIDGET: Ooh, look, the royal scribe begins the ceremonial writing of Gary’s name in the book of Champions.
RYAN: Looks like they’re just using a ballpoint pen with a feather taped to it. Hey, where’d Wizard Marilyn go?
BRIDGET: What? That’s weird, she was right here. But we only talked about one way a company goes private, she said there were three–
DED ED: Hey! You two! With the bard! Talking about IPOs! Are you two putting on some kind of show of your own?
RYAN: Oh no, it’s Ded Ed, the insult comic. Uh, yeah, we’re just recording some of this Ren Faire for our money podcast.
DED ED: “Money, podcast”? Don’t often hear those words in the same sentence.
SFX: SCATTERED CROWD LAUGHS
RYAN: Ha ha. Good one. More like we answer money questions.
DED ED: Hey, I got a money question for you- when are you gonna get a real job?
SFX: SCATTERED CROWD LAUGHS
DED ED: Ok, this has been fun, but your little show is blocking the walkway to MY show!
RYAN: Surely there’s room for many shows at this sprawling faire?
DED ED: Not at 3pm! It’s just me, Ded Ed, Legend of the Renaissance Fun Faire and I’m gonna have you thrown in the stocks for interrupting mine! Or maybe the gaol!
BRIDGET: Oh, I think it’s pronounced “jail” but sometimes it’s just spelled “G A O L” because it’s like old-timey.
DED ED: Doesn’t matter how it’s spelled or pronounced, you’re going in it! And for you, Ginger Spice, twice as long!
BRIDGET: Gadzooks! Okay, listeners, we’re going to take a quick little break, nothing to worry about, we will definitely be back to talk about the OTHER ways to get on the stock market.
RYAN: And, hopefully we won’t be sharing that from the stocks or in a guh-ole. Back right after this!
RYAN: Hey Million Bazillionaires, hope you’re enjoying this episode of Million Bazillion! There’s so much to say about IPOs and stocks, so if you want to know more, sign up to get the tip sheet for THIS episode. Marketplace dot org slash newsletters.
BRIDGET: Yeah, it’s a newsletter that’s worth your time if you want to make sure your family knows the important things when it comes to money. We send new episodes, conversation starters, and more ways to explore every episode’s topic. Marketplace dot org slash newsletters, and thanks.
RYAN: Welcome back! Things are really starting to get interesting at the Renaissance Fun Faire! Bridget was almost thrown in the stocks!
BRIDGET: I was not! All we had to do was bribe Ded Ed with one of those giant turkey legs and move the gathering crowd out of the way of his 3pm show. Could have really used Wizard Marilyn’s help there!
RYAN: Yeah, she disappeared her usefulness right on cue. So far, we’ve mostly been talking about IPOs or, “Initial Public Offering” which is when companies make a big splashy deal about selling shares of their company but that can take months and months and a lot of work to set up. Much like this castle painstakingly assembled from popsicle sticks. Wow, some hardcore rennie must’ve spent an eternity building this thing, check out the detail, I’m gonna touch it me see…
RYAN: It wasn’t me!
BRIDGET: IPOs are really like the main way companies get on the stock market. But Wizard Marilyn said there are other ways to get on the stock market too, so we gotta learn about those next!
SFX: MAGICAL POOF
WIZARD MARILYN: And that we shall! And I need another knight! Who wants to be Sir SPAC?
BRIDGET: Wizard Marilyn! Where did you go? We needed you!
WIZARD MARILYN: There was business I had to attend to! Now, I said, WHO wants to be Sir SPAC? Imagine the pride you’ll feel, when your name is engraved in the book of Champions!
SFX: CROWD MUMBLINGS
SIR SPAC: I can do it!
BRIDGET: Excellent! Okay everyone, give a round of applause for Sir SPAC!
SFX: CLAPPING
WIZARD MARILYN: Now the thing with Sir SPAC is… he’s not going to climb the wall on his own! He’s going to look for a much stronger partner!
SIR SPAC: That makes sense! See, I’ve got weak ankles and I hate heights, but I’m really good at figuring out the most successful route through an obstacle course! So if there’s someone really strong out there, who wants a little help with the thinkin’ part of this challenge, raise your hand!
SFX: CROWD MUMBLINGS
SIR SPAC: Anyone?? Come on! I’ll share the 10% Faire Discount with you!
WIZARD MARILYN: What we are witnessing here is a SPAC. That’s a Special Purpose Acquisition Company. They’re a “shell company”, they don’t make anything for real. They go public with an IPO, but they tell everyone - don’t worry, I’m about to find a really great private company to buy or merge with.
BRIDGET: Oh we’ve covered what happens when companies merge, it’s like a marriage. What’s mine is yours?
WIZARD MARILYN: Precisely. People buy shares of the SPAC because they really want to own a piece of that other, private company that the SPAC will eventually buy.
SFX: CROWD MUMBLINGS
SIR SPAC: Come on, any takers??
WIZARD MARILYN: Sir SPAC, you only have another ten seconds to find someone who will take you up on your offer!
SIR SPAC: We’ll split the treasure!
BARNABY: Okay! I can do it. I’m Barnaby. I’m very strong! Watch me crush this metal water bottle!
SFX: METAL CRUNCHING
RYAN AND BRIDGET: Whoa! That’s strength there. Strong guy, for sure.
SIR SPAC: Yes! You shall be my partner! Come on up here! Now, let me talk you through the rope ladder, it’s harder than it looks.
SFX: PROPULSIVE EXPLAINER MUSIC
WIZARD MARILYN: This way of getting on the stock market can be considered a sort of short cut to going public
SIR SPAC: You gotta give it a running leap to make sure you clear the gap–
WIZARD MARILYN: It means the private company that was bought by the SPAC didn’t have to go through all the training, I mean, paperwork and regulatory checks that a company choosing an IPO would go through.
SFX: SPLASH
BARNABY: I. Am. O-Kay.
SIR SPAC: Okay, now raise your left leg and find that toe hold by your knee, yes right there!
WIZARD MARILYN: Once they’re listed on the stock market, everyone has to follow the same rules. But some experts have found that SPACs tend to perform a little worse on the stock market than other companies.
SFX: BELL CLANG
RYAN: Whoa, that was fast!
WIZARD MARILYN: Yep, under a SPAC, the whole going public process can be pretty fast! Alright everyone, let’s give a round of applause to Barnaby and Sir SPAC!!
SFX: CROWD APPLAUSE AND CHEERS
BARNABY: Great, so let’s put our names in the Book of Champions.
SFX: BOOK OF CHAMPIONS STING
SIR SPAC: Your name? Why would I put your name alongside my name?
BARNABY: Well, I did all the work…
SIR SPAC: But none of this would’ve happened without me!
RYAN: Alright Bridget, what a much funner day than I expected here at the Ren Faire. Met some colorful characters, ate some food without utensils, and most importantly, we weren’t stabbed with any swords or spears. So what did we learn today?
WIZARD MARILYN: Actually Ryan -
We’re not quite done yet
For there are three ways to get
Listed on the stock market
So settle in
It’s about to begin
When the arrow hits its target.
SFX: CLANGING BELL
RYAN: What in the! Who climbed the tower without us noticing?
LADY OF THE DIRECT LISTING: ‘Tis I! The Lady of the Direct Listing! And I climbed no tower, but I did surely ring the bell! Using my Bow and Arrow and my verily excellent skill as an archer!
WIZARD MARILYN: And there it is, the third way a company can get listed on the stock market. They can just file a little paperwork.
BRIDGET: Wait, what? Companies can just do that? Why don’t they have to do all the government regulation stuff like with an IPO?
WIZARD MARILYN: Because the company isn’t offering any NEW shares. So they don’t have to do everything that’s involved with an IPO process. You don’t have to climb the tower.
RYAN: But if you didn’t climb the tower, you don’t get treasure.
LADY OF THE DIRECT LISTING: I have no need of treasure! I only want my name in the book of champions and that 10% discount at all the Faire’s food stands and shops!
WIZARD MARILYN: Companies that decide to do a direct listing know they’re not going to get a huge chunk of money. They don’t NEED it. Or at the very least, it’s not worth making new shares to get it.
BRIDGET: Right, but going public with a direct listing means anyone who already holds their stock, like employees or early investors, are now free to sell and trade that stock they already had.
RYAN: Wait, companies can give out shares without being on the stock market?
WIZARD MARILYN: Yes! Companies might give pieces of their company away to investors or early employees before they go public. Or think of it like a family business that’s maybe split between all the siblings. But you can’t sell those shares on a stock market, and you know, make money, until you’re LISTED on that stock market.
LADY OF THE DIRECT LISTING: Hate to interrupt- So is the discount like a coupon I show? Or a discount code?
WIZARD MARILYN: Congratulations on having your name written in the book of champions! And so concludes today’s contest at the Charge the Dragon Tower Obstacle Course.
WIZARD MARILYN: Your applause is welcome, your applause is welcome!
RYAN: This reminds me- I may have some early employee stock in Blockbuster Video, I should check and see if it’s worth anything.
BRIDGET: Ryan, I hate to break it to you, but-
DED ED: Here ye, hear ye, I have a money joke. Why did the alchemist become the jester? All he could create was fool’s gold. You’re welcome, you fools.
RYAN: More chimney cakes and cider, my lass! Anon! Anon!
BRIDGET: I love how much you’re getting into the Renaissance Fun Faire Ryan. Getting your face painted is like a classic Faire experience.
RYAN: Yeah, and who knew if you ask them to give you a Juggalo look, they’ll just do it? Probably some crossover in the Ren Faire/Juggalo venn diagram…
BRIDGET: Okay, and so what did we learn today?
RYAN: Today Perry wanted to know how companies can get listed on the stock market. The short answer is, they go public. And the longer answer, which we took the whole episode and an extended obstacle course metaphor to describe, is that there are three ways to get on the stock market, but an Initial Public Offering or IPO is the most common way. It means a company offers a bunch of pieces of their company for sale to the public. It’s a way for the people who own the company to make a lot of money on one very special day.
BRIDGET: Private companies can also “go public” by allowing themselves to be bought by a SPAC. That's a shell company created for the purpose of going public and buying private companies who want to go public without all the work of doing an IPO themselves. Or if a company doesn’t want to make a bunch of money by offering new shares, they just do a direct listing. Once a company is traded on the stock market, it has to follow all the same rules as everyone else, no matter how they got there in the first place.
RYAN: Why would a company go through all this? Well there are benefits to being a publicly traded company. Besides that big chunk of money you get if you do an IPO, it can be easier to borrow or raise money if you’re public. It can make early employees and investors happy because they can sell their own shares. And it’s kinda like bragging rights for the people who run these companies. Ooh, I’m listed on the STOCK Market. And I look great in a vest!
BRIDGET: That’s a pretty good summary. Man, what a journey, right? We really went there and back again.
WIZARD MARILYN: I am proud of you both.
BRIDGET: Whoa, where’d you come from?
RYAN: The wizard’s back.
WIZARD MARILYN: I have one last spell up my sleeve! For answering Perry’s question, you two deserve a little reward. And for creating obstacles where none need be, I think Ded Ed deserves to face little consequence for his actions. Watch this!
SFX: FAIRY DUST SOUND
WIZARD MARYLIN: Abra-cadabra-Santa-Ana-Nick-Vallelonga!
SFX: AUDIENCE COMING DOWN FROM LAUGHTER
DED ED: Hey, so who here likes the ocean?
SFX: SCATTERED CLAPS
DED ED: Nice, I guess it’s like they say in Medieval Times, “serf’s up!”
SFX: NO ONE LAUGHS, SCATTERED COUGHS
DED ED: Get it? Serf, like with a “e.”
BRIDGET: Yikes, why is Ded Ed so unfunny all of the sudden?
WIZARD MARILYN: For tonight only, I cast a spell transforming him from an insult comic to a pun comic.
RYAN: Hahaha! Wizard Marilyn, that’s brilliant! That’ll teach him a lesson.
DED ED: Hey, uh, er, which monarch’s reign are we supposed to be under anyways? Elizabeth or King James? Can I get a “reign check” from anyone?
SFX: CROWD BOOS
DED ED: Don’t boo me! I’m trying my best, but can only come up with puns! Don’t boo me, I’m not a ghost!
BRIDGET: That’s all for this episode of Million Bazillion! Special thanks to Professor Afra Afsharipour, At the UC Davis School of Law for her expertise.
DED ED: Why couldn’t Vivaldi play medieval music? Because his violin is baroque!
RYAN: Subscribers to our newsletter already know what next week’s episode will be! If you have a question you want us to answer, send it to us at marketplace dot org slash million.
DED ED: Why is a dog like a tree? Because they both use their bark once they’re dead!
BRIDGET: Yeah, check out that Talk To Us button, you can write us a note or send us a voice memo.
DED ED: Who is the greatest chicken killer in Shakespeare? MacBeth, because he did murder most foul!
RYAN: Million Bazillion is produced by Marketplace from American Public Media. It’s hosted by me, Ryan Perez and Bridget Bodnar. Bridget wrote this episode.
BRIDGET: Our senior producer is Marissa Cabrera. Our intern is Perry Gregory. And special thanks to the folks who leant their voices to this episode: Sabri Ben Achour, Ben Revier, Jay Siebold, Tony Wagner, Alice Wilder, and Annie Worden.
DED ED: Did you know what Camelot is famous for? It’s knight life!
RYAN: This episode was sound designed by Sam Bair. And mixed by Charlton Thorp. Our theme music was created by Wonderly. Bridget Bodnar is the Director of Podcasts at Marketplace. Joanne Griffith is the Chief Content Officer Neal Scarbrough is the VP and General Manager.
DED ED: Maybe you know this in the crowd, who invented fractions? It was Henry the eighth!
BRIDGET: Special thanks to The Ranzetta Family Charitable Fund and Next Gen Personal Finance for providing the start-up funding for this podcast, and continuing to support Marketplace in our work to make younger audiences smarter about the economy.
DED ED: How do medieval sheep protest in prisons? They storm the baa-stille!
RYAN: If Million Bazillion is helping your family have important conversations about money, consider making a one-time donation today at marketplace-dot-org-slash-givemillion, and thanks for your support.
DED ED: What do you call a medieval siege machine that throws flowers? A tre-bouquet!
The Ranzetta Family Charitable Fund and Next Gen Personal Finance, supports Marketplace’s work to make younger audiences smarter about the economy. Next Gen Personal Finance is a non-profit that believes all students benefit from having a financial education before they cross the stage at high school graduation.
The Sy Syms Foundation: Partnering with organizations and people working for a better and more just future since 1985.
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