When a company decides to go public it is viewed as no longer been owned by a set of private individuals, but instead, it is viewed as now being owned by those individuals as well as by members of the public (or shareholders). This ownership is acquired by shareholders through the purchase of shares in an Initial Public Offering (IPO) or even after an IPO. “An Initial Public Offering (IPO) may be defined as the first sale of stock by a private company to the public. IPOs are often issued by smaller
Words: 2059 - Pages: 9
Groupon Inc. was forced to restate their revenue numbers on the financial statements before being able to offer an Initial Public Offer (IPO) in 2011. Groupon is a company that offers daily deals for local services of their customers. These deals can be bought one day and then used at a future date of the customer’s choosing. These offers are comprised of a set portion for the business owner and a markup commission value for Groupon. Previously Groupon would book the entire value of the sale
Words: 781 - Pages: 4
The XO group, Is the nation's leading wedding resource, reaching well over a million engaged couples each year through the #1 wedding website TheKnot.com. Other products from The Knot include The Knot national and local magazines, The Knot books (published by Random House and Chronicle) and television programming bearing The Knot name (aired on the Style and Comcast Networks). The Company also owns WeddingChannel.com, the most visited wedding gift registry website. The Company's brand, The Nest
Words: 400 - Pages: 2
What Are the Weaknesses of a Private Company Going Public? Taking a private company public can be a celebratory time for owners and management. It is the reward for years of successful business practices and positive consumer reception. Taking a company public can also expose significant weaknesses in a company that is unprepared to weather the added financial burdens and loss of control that come with life on the stock market. Distracted Management The process of a taking a private company
Words: 370 - Pages: 2
candidate for an IPO? Explains what type of company makes a good candidate for an IPO in depth. Explains the Advantages and Disadvantages of an IPO. An initial public offering, often shortened to an IPO, is when a company turns from a private company into a public company. This is done by the first sale of stock to the public by the former private company. This process is usually completed by a smaller company that is trying to increase its capital, and get its name out there. Even though
Words: 3438 - Pages: 14
accounting-based regulation include the potential to mitigate resource misallocation by preventing poorly performing firms from entering the market and to avoid “adverse selection problems” by managers. * Recent Chinese regulations on rights offerings and seasoned equity offerings shed light on the costs and benefits of accounting-based regulation in emerging capital markets. Introduction One of the most controversial debates in economic policy is: Should governments intervene in or regulate capital markets
Words: 717 - Pages: 3
Reid Hoffman founded Linkedin, Inc. a social networking site in 2002 for professionals to network; however, Reid also had prestigious co-founders where on the journey with him. The company was incorporated in Delaware in March 2003 under the name LinkedIn, Ltd. and changed their name to LinkedIn Corporation in January 2005. Dan Nye was hired as CEO, but only stayed there 2 years and Deep Nishar was hired as VP of products, who is a form Google executive. This company client list was very diverse
Words: 655 - Pages: 3
information about the market. There exists a greater asymmetry in IPO market as compared to secondary market because there is no former data available for it. These asymmetries are somewhat limited by using book-building process to float initial public offerings instead of public auctions. The book-building process, which was first examined in the academic literature by Benveniste and Spindt (1989) and Benveniste and Wilhelm (1990), involves shares issuing company, investors and the intermediaries which
Words: 2471 - Pages: 10
room in 2004 is now its CEO, chairman of the board and controlling shareholder. In its regulatory filing, Facebook credits Mr. Zuckerberg with the vision to create what has become the largest social network on Earth. But as Facebook changes into a public company, its 27-year-old founder will still have final say over all major decisions, largely unchallengeable by investors or the board of directors. In my study of organizational behaviour, I have yet to come across one who was considered great
Words: 600 - Pages: 3
Case Study IPO Process An initial public offering (IPO) is selling traded equity to the public on a securities exchange for the first time. The initial public offerings are used by companied to raise additional capital, and to transform from a private company into a public company. The IPO process is as follows. 1. Selecting an underwriter 2. Due diligence 3. Preliminary registration 4. SEC review 5. Road show and book building 6. The offering settlement There are many advantages
Words: 605 - Pages: 3
