Quote (Botted @ 20 Sep 2013 14:08)
Basically i need to write a 2 page single spaced paper on the following:
What is an ipo?
Why does one have an IPO?
How would an IPO change the financial statements of a company (say twitter)?
Last question would be something along the lines of cash increased, common stock increased?
answered
raising new capital
twitter? wtf you on about? there are different regulations for public companies than private companies
Advantages of going public:
Greater liquidity
Private equity investors get the ability to diversify.
Better access to capital
Public companies typically have access to much larger amounts of capital through the public markets.
Disadvantages:
The equity holders become more widely dispersed.
This makes it difficult to monitor management.
The firm must satisfy all of the requirements of public companies.
SEC filings, Sarbanes-Oxley, etc. this is what you are looking for in the financial statements
This post was edited by Simens on Sep 20 2013 07:33am