Summary

Chapter Six describes the IPO of Donaldson, Lufkin, & Jenrette (DLJ) and the impact it had on the culture of Wall Street. DLJ was a small, privately-owned investment firm until 1969, when its founders sold shares of the company to public buyers. The bank’s goal was to develop a source of capital - the public - that could finance the firm’s growth. Wall Street had been providing this service to companies for years, facilitating IPOs so that the company could receive the capital necessary for further investments. DLJ, however, was the first investment bank to do so, forcing the NYSE to change its constitution. While they were initially resistant, many on Wall Street knew that their banks desperately needed an influx of outside capital, far more than their partners could provide, if they were to continue being successful. In order to compete over...