to describe the business of raising capital for companies and advising them on financing and merger alternatives. Capital essentially means money. Companies need cash in order to grow and expand their businesses; investment banks sell securities to public investors in order to raise this cash. Generally, the breakdown of an investment bank includes the following areas: * Corporate finance The bread and butter of a traditional investment bank, corporate finance generally performs two different
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after further testing. Elaine knows that Blake will not be pleased. Blake is scheduled to meet with the board of directors next week to discuss the need for additional investment capital in the next year, and the company’s plans for a public stock offering in the next several years. Elaine stands to benefit substantially from
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Overview Essentially, this case requires students to perceive how the reporting environment of a company has changed. A private company has tapped new sources of financing in order to meet competition, and those sources are imposing a GAAP constraint on the company for the first time. The company’s must reconsider its financial reporting objectives and therefore the company’s accounting policies. The “required” asks for a report from an accounting advisor to the company’s board of directors
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on their PCs Over 6.7 million subscribers They have over 55 million discs and ship 1.6 million a day, on average Corporate History Netflix was incorporated on August 29, 1997 Began operations on April 14, 1998 Initiated an initial public offering (IPO) on May 29, 2002 selling 5,500,000 shares of common stock at the price of US$15.00 per share On June 14, 2002, it sold an additional 825,000 shares of common stock at the same price Netflix posted its first profit during fiscal year
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Should First Rangeway remain public or go private? Since First Rangeway Consulting went on public, Kenneth, the CEO, has faced various challenges. The senior management at First Rangeway is considering whether it should remain public or go private. We think that First Rangeway should stay public. Management transparency: As a publicly traded company, there are many regulatory requirements that the First Range should follow. It has to disclose more information to protect
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Key Concepts * Initial Public Offering (IPO) - First offering of stock to the general public. * Underwriter - Firm that buys an issue of securities from a company and resells it to the public. * Spread - Difference between public offer price and price paid by underwriter. * Prospectus - Formal summary that provides information on an issue of securities. * Underpricing - Issuing securities at an offering price set below the true value of the security. Type of IPO offers
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Tri-State 10 Securities Offering Reforms Are a Year Older – Are IPO Issuers a Year Wiser? 12 Selected WilmerHale Public Offerings 14 SEC Expands Required Compensation Disclosures 18 PIPEs and Rule 144A Market Review and Outlook 21 SOX 404 – The Saga Continues 22 Is the AIM to Reincorporate? 24 Best Practices: When You Want to Do More than Just Follow the Rules US IPO Market Review and Outlook 2006 Review With 198 offerings, deal volume in the 2006 US
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first one is to maintain managerial control and succession for successful continued operations, the second one is to initiate a “liquidity event” that will generate a significant amount of cash for the investors, the third one is an IPO (initial public offering) has become a reality, and the last one is most realistic opportunity is sale of the business. Advantages of Family Controlled Firms are: Long-term orientation, Greater independence of action, Family culture as a source of pride, Greater
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Initial Public Offerings Chris Kessler FIN/370 September 1, 2014 John Wetherington Initial Public Offering In today’s society businesses have a primary goal of profitability and growth, not only for the shareholder’s, but also the livelihood of all the employees. One such way which this is made possible is to ensure there is plenty of working capital to promote growth. There are two main things that may be done to gain this working capital essential to grow. The first is through
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Alibaba started his business as a platform for facilitating E-commerce between buyers and sellers in China in 1999. There are 17000 employees in more than 50 cities and 50 million users in 240 countries now. Before started the process for an initial public offering in the U.S, Alibaba.com has hold 70% of China’s online E-commerce market. As the biggest IPO in history, Alibaba became one of the most valuable tech companies in the world. By listing in the U.S., Alibaba come into the international stage
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