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    Traditional method of issuing an IPO or the Internet

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    Is it better to use the traditional method of issuing an IPO or the Internet to issue the IPO?

    What are the advantages and disadvantages of each?

    © BrainMass Inc. brainmass.com November 24, 2021, 2:29 pm ad1c9bdddf
    https://brainmass.com/business/initial-public-offering/traditional-method-issuing-ipo-internet-254553

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    IPO

    Is it better to use the traditional method of issuing an IPO or the Internet to issue the IPO?

    What are the advantages and disadvantages of each?
    IPO is an initial public offer of securities made by the organization to the general public. Let us understand the meaning of traditional IPO. Traditional IPO means the IPO sold through the road shows and advertisements to the investors. (HBS, 2009) These investors are often high net worth and institutional investors. Hence in this kind of IPO a company hires an investment bank to underwrite the IPO. The company and the investment bank research the likely market value of the company. Based on the research and the amount of capital the company wants to raise in the ...

    Solution Summary

    This response compares the traditional method of issuing an IPO with the Internet to issue the IPO.

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