Understanding Business
Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
Question
Book Icon
Chapter 19.3, Problem 19.3AQ
Summary Introduction

To discuss: The way that the issuing stock can be an appealing option for financing a company’s growth.

Introduction: Initial public offering (IPO) refers to the issue of shares by the company to the general public.

Blurred answer
Students have asked these similar questions
How to do you rate the role of SEBI in safeguarding interests of retail investors directly or through mutual funds in tech startup IPOs? What are the latest actions taken by SEBI regarding tech start up IPO Further, what policy recommendation will you give here.
Imagine you were to start your own business in Kleve, manufacturing small but smart household robots. Assume your business has developed a product currently superior to any competition. You have secured an initial manufacturing facility in Kleve-Kellen, with enough space to expand. However, the manufacturing process is complex. You have already convinced a number of very wealthy investors to meet your financing needs of the next two to three years, so there is no pressing need for going public yet.   1. Why would your business "go global" early on? And how would your startup business be positioned in a global market?   2. Please propose a likely sequence of steps, that your business has to take to achieve this sort of global ambition. Don't just name the steps but also elaborate on business resources you consider essential.   3. Please identify the three biggest challenges you expect to meet in the process of "going global"! Please be as specific as you can be, the more your analysis…
discuss the advantages and disadvantages of debt financing and common stock financing. Then, for your initial post, discuss the following: From the company’s viewpoint, why would it prefer to fund the venture initially with common stock instead of debt?
Knowledge Booster
Background pattern image
Similar questions
Recommended textbooks for you
Text book image
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Text book image
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning