Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
15th Edition
ISBN: 9780134476315
Author: Chad J. Zutter, Scott B. Smart
Publisher: PEARSON
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Question
Chapter 2.4, Problem 2.13RQ
Summary Introduction
To discuss:
The general procedures to be followed by a firm while it opts for an initial public offering.
Introduction:
Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital.
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What is the purpose of an initial public offering (IPO)? How does an investment bank facilitate the process? List and describe several recent IPOs. Discuss the advantages and disadvantages of an IPO.
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Chapter 2 Solutions
Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
Ch. 2.1 - What are financial institutions? Describe the role...Ch. 2.1 - Prob. 2.2RQCh. 2.1 - Describe the role of commercial banks, investment...Ch. 2.2 - What role do financial markets play in our...Ch. 2.2 - Prob. 2.5RQCh. 2.2 - Prob. 2.6RQCh. 2.2 - Prob. 2.7RQCh. 2.2 - Describe the role of capital markets from the...Ch. 2.3 - Prob. 2.9RQCh. 2.3 - Prob. 2.10RQ
Ch. 2.4 - What is the difference between an angel investor...Ch. 2.4 - Prob. 2.12RQCh. 2.4 - Prob. 2.13RQCh. 2.4 - Prob. 2.14RQCh. 2.5 - Prob. 2.15RQCh. 2.5 - What is a mortgage-backed security? What basic...Ch. 2.5 - Prob. 2.17RQCh. 2.5 - Why do falling home prices create an incentive for...Ch. 2.5 - Why does a crisis in the financial sector spill...Ch. 2 - In the chapter opener, you read about the...Ch. 2 - Transaction costs Assume that you use a TD...Ch. 2 - Prob. 2.1WUECh. 2 - Prob. 2.2WUECh. 2 - Prob. 2.3WUECh. 2 - Prob. 2.4WUECh. 2 - Prob. 2.5WUECh. 2 - Your broker calls to offer you the investment...Ch. 2 - Transaction costs You would like to purchase one...Ch. 2 - Transaction costs In late December you decide, for...Ch. 2 - Initial public offering On April 13, 2017, Yext...Ch. 2 - Initial public offering A Brazilian company called...Ch. 2 - Prob. 2.5PCh. 2 - Prob. 1SECh. 2 - Integrative Case 1 Merit Enterprise Corp. Sara...
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Similar questions
- Generally, an initial public offering is: Group of answer choices an offer to potential investors of preference shares to newly list a company on a stock exchange. an offer to potential investors of ordinary shares to newly list a company on a stock exchange. an offer to potential investors of company debentures to newly list a company on a stock exchange. an offer to potential investors of unsecured notes to newly list a company on a stock exchangearrow_forwardWhat types of companies enter the markets for initial public offerings? Why docompanies choose to go public? Why not stay private?arrow_forwardWhat is initial public offering (IPO)?arrow_forward
- Let’s discuss the intermediary in an initial public offering (IPO) using trading terminology. In a best-efforts IPO (rather than firm commitment IPO), does the investment bank act as an agent/broker or a principal/dealer? (a) agent/broker (b) principal/dealearrow_forwardMikasa Enterprises needs additional funding and intends to sell its shares in the stock market thru an initial public offering (IPO). This transaction is considered as: A. Private placement B. Public offering C. Any of these D. Financial institution transactionarrow_forwardDiscuss the benefits and drawbacks, to the shareholders of a company, of a public listing on a stock exchange compared to private equity finance as a way of disposing their shares.arrow_forward
- What are some of the reasons why investors post IPOs into the primary markets?arrow_forwardWhat are the main costs associated with an initial public offering (IPO)?arrow_forwardDescribe what is IPO and what is involved in the IPO process. Do you think that it is better to buy shares in an IPO or shares in companies that are already listed on the stock exchanges? Why?arrow_forward
- Explain public offering in the Indian context and bring out the pros and cons of raising capital via an IPO. Explain briefly, no plagiarized answers.arrow_forwardIn an IPO process, the investment bank (s) perform the following except: Question 25 options: Provide advice; Make a market in the shares; Provide the rating; Lead the diligence process; Orchestrate the road showarrow_forwardQuestion Two Discuss the benefits and drawbacks, to the shareholders of a company, of a public listing on a stock exchange compared to private equity finance as a way of disposing their shares. Discuss circumstances in which a Management Buy - Out (MBO) might be an appropriate form of divestment from a business. Explain the factors the venture capital fund is likely to consider or impose when financing the MBOarrow_forward
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