Describe the financing issues that an organization faces when it goes public. Include an example of a company which has had an initial public offering in the past three years to address the following:
a. Registration, disclosure and compliance issues
b. Cost of issuance
c. The impact on ownership control and return
d. Source and application of funds
Be sure to support your position using information from the assigned text(s) reading and other sources. Be sure to properly cite all sources.
For your convenience, I have attached a fully APA formatted Microsoft Word document at the end of this posting for your use:
An initial public offering (IPO) is described as being "the process through which a company makes the transition from a privately held entity to a public company with stock traded on one of the major stock exchanges" (Frontline, 2005).
Typically, a company going through the IPO process is relatively young and unknown. Because of the lack of a financial history from which an interested party might surmise future performance, IPO's are generally considered being riskier investments. However, established private companies also occasionally decide to "go public" in order to raise additional needed capital.
Sample and Steps for an Initial Public Offering.