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Unformatted text preview: The IPO process Definition : - Initial Public Offering . The first sale of stock by a company to the public . Companies offering an IPO are sometimes private, new, young companies, or sometimes companies which have been around for many years but are finally deciding to go public. IPOs are often risky investments , but often have the potential for significant gains. IPOs are often used as a way for a young company to gain necessary market capital . A company that is thinking about going public should start acting like a public company as much as two years in advance of the desired IPO, However , since capital is often needed to grow a private company and values of companies are best determined in the marketplace, IPO’s continue to be used as a way for growing private companies . Related Parties :- the private company, investors and IPO team ( Investment Bank , legal council , the company’s financial manager, the company’s accountants and Outsider Auditor )....
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- Spring '12
- Public company, investment bank