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Financial Issues of Google going Public

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Please discuss financing issues that Google faced when it went public. Provide examples as to when Google, in the past 3 years, had an initial public offering, specifically addressing source and application of funds.

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Word document attached explains the financial issues Google faced when going public, with examples.

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Topic: Financing Issues that Google faced when it went public. Give an example of when Google had an initial public offering in the past three years which address the following:

- Source and application of funds.

Please cite sources.

Overview of IPO

IPO is an Initial Public offer to an investor, which mean it is the first issue of equities by the company to the general public at large. Among the most popular reasons a company might choose to go public are to: raise capital to expand its business, finance acquisitions, pay debt and have greater and easier access to capital in the future. Thus financing issue is how much to raise the funds from the equity offer. What should be the optimal capital structure in order to minimize the cost of capital.

Public companies have thousands of shareholders and are subject to strict rules and regulations. They must have a board of directors and they must report financial information every quarter. In the United States, public companies report to the SEC.

Registration -Issues
Company can become "public" in one of two ways - by issuing securities in an offering registered under the Securities Act or by registering the company's outstanding securities under Exchange Act requirements. Both types of registration trigger ongoing reporting obligations for your company.

Disclosure
If you decide on a registered public offering, the Securities Act requires your company to file a registration statement with the SEC before the company can offer its securities for sale. It has got two parts:

• Additional information

• Reporting and Fiduciary Responsibilities
Public companies must continuously file reports with the SEC and the exchange they list on. They must comply with certain state securities laws , NASD and exchange guidelines.
If your company registers a class of securities under the Exchange Act, it must file the same annual, periodic, and current reports that are required as a result of Securities Act registration

Compliance Issues

Record Keeping
Companies need to require audited financial statements for the last three years before they can go public. These need to ...

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