Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
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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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.
Describe the role of the investment banker in taking a company public.   What is an IPO and what steps are taken in order to get the IPO ready for public offering?       What does both the investment banker and the company that is going public want to happen on the first day of public trading for the company and why?
Which of the following statements about IPOs is (are) True: (i) An IPO refers to the first time a firm issues bonds to be bought by the public. (ii) An IPO refers to the first time a firm issues shares to be bought by the public. (iii) A secondary offering IPO is when a firm becomes public by allowing previous investors and founders to sell part (or all) of their shares.
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