The biggest brands

Q

What are the world’s biggest brands?

— T.C., Flint, Michigan

A Forbes magazine recently published a list of the world’s most valuable brands. Here are 2018’s top 10, along with the value of each brand:

1. Apple, $183 billion

2. Google, $132 billion

3. Microsoft, $105 billion

4. Facebook, $95 billion

5. Amazon, $71 billion

6. Coca-Cola, $57 billion

7. Samsung, $48 billion

8. Disney, $48 billion

9. Toyota, $45 billion

10. AT&T, $42 billion

It’s interesting to observe how the list changes over time. A mere 15 years ago, Facebook didn’t exist, and Amazon started selling items other than books only in 1998. In 2010, Forbes’ ranking of the most valuable brands included names such as IBM, General Electric, McDonald’s, Intel and Nokia.

Q

When a company goes public via an initial public offering (IPO), do the original owners no longer own it? — G., online

A

When a company debuts on the open market with an IPO, usually only a part of it is sold to new investors. Here’s a simplified example: The owners of Porcine Aviation (ticker: PGFLY) have determined, with the help of investment banks, that the company is worth $100 million. They decide to sell 30 percent of it to the public via an IPO to raise money to help it grow faster. They decide that they’ll have 10 million shares initially priced at $10, for a total value of $100 million. So 3 million shares will be sold to the public, with the original owners retaining ownership of 70 percent of the company, or 7 million shares. The IPO will generate about $30 million (3 million shares times $10) — less the investment bank’s fee, which is often about 7 percent.