When Investors Buy Alibaba Shares, They Won't Get What They Paid For

NPR | By Zoe Chace

Published September 12, 2014 at 4:21 PM EDT

When the Chinese e-commerce company Alibaba goes public, it's going to the biggest public offering ever. When investors buy their shares, however, they won't be buying an ownership stake in Ali Baba's profitable websites. Instead, they will be buying shares in a holding company based in the Cayman Islands. It's illegal for Chinese Internet companies to accept investment from outside the country, but Alibaba has found an ingenious way to still get the $20 billion they want from outside investors.

Zoe Chace

Zoe Chace explains the mysteries of the global economy for NPR's Planet Money. As a reporter for the team, Chace knows how to find compelling stories in unlikely places, including a lollipop factory in Ohio struggling to stay open, a pasta plant in Italy where everyone calls in sick, and a recording studio in New York mixing Rihanna's next hit.

See stories by Zoe Chace

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