This concept establishes the basis for understanding how a company’s structure affects the way it finances itself, how it needs to communicate to stockholders and bondholders and the regulatory environment which companies exist in currently and in the future.
Let’s Discuss: The IPO Process
You should be able to explain and support your reactions to the following questions:
- What is an IPO?
- What is the difference between a public corporation and a private partnership or corporation?
- How does the SEC regulate a company in going “public” and once it is a public entity?
- Give an example of a recent IPO. Why do you think this company went “public”?