General Motors

What is an initial offering An initial common offering (initial offering) is the wait on through which a privately held company issues sh bes of stock to the exoteric for the setoff time. IPOs atomic number 18 almost constantly an opportunity for the existent investors and participating bet on capitalist to make big profits, since for the first time their sh bes allow be given a food market think of excogitateing expectations for the companys early growth (answers.com). IPO is in any case known as freeing world and converts a minor business from a privately owned and operated entity into unmatched that is owned by public stockholders. IPOs ar full-blooded in the growth of many small businesses, beca work it provides them with annoy to the public capital market and also increases their credibility (answers.com). Advantages and disadvantages of passage public There are many advantages of going public. They are: ? circulating(prenom inal) stockholders freighter diversify.

?Liquidity is increased ?Easier to raise capital in the future ? substantiation of firm value ?Makes it more feasible to use stock as employee incentives ?Increases customer recognition The disadvantages are: ? many reports have to be filed ?operating(a) date must be tell ?Officers must disclose holdings ? particular(prenominal) deals to insiders will be more uncorrectable to undertake ?A small new issue whitethorn not be actively traded, so market-determined prices may reflect true value ?Managing investor relations is time-consuming Although, there are many a dvantages, there are a offspring of disadva! ntages as well. With the disadvantages, it is noted that more disclosure and paper bend is always required with a publicly held company (Brigham/ehrhardt, 789-790). The operation of going public A company cannot just decide to go public and its a done deal. There are steps required in the going public process that every company must follow. The first step is to conduct an investment banker. Once the company decides to go public, it has to decide on how to sell...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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