FratFiles

• Save Paper

1. Introduction
All companies need to raise capital at one time or another, first of all to start-up their business, and then to finance new projects and expand operations. Most of them start out by raising money from private sources, with no liquid market existing if the investors wish to sell their stock. A lot of new ventures rely initially on these internal funds, which come mostly from relatives and friends; some other firms, instead, receive help from the so-called “angel investors”. Furthermore, in some countries as Italy, debt (bank loans) is the main form of financing. Indeed, even after the start-up, there are many successful entrepreneurs (e.g. IKEA, Domino’s Pizza and Levi Strauss) who continue to operate successfully as private, unlisted companies.
Anyway, if a company prospered, it would need additional equitiy capital. To raise it, a firm usually “go public”; it means that it starts selling a portion of itself to a large number of diversified investors.......

View the rest of this paper...

Approximate Word Count: 3253
Approximate Pages: 14 (250 words per double-spaced page)

Similar Essays

1. The Process Of An Initial Public Offering (Ipo). The Underpricing ...
   

   The process of an Initial Public Offering (IPO). The underpricing problem.
   1. Introduction All companies need to raise capital at ...

2. Netscape'S Ipo
   

   ... had been going through the initial public offering (IPO) process. ... take advantage
   of underpricing and profit ... final stages of an initial public offering (IPO). ...

3. Is It Possible To Forecast Financial Schenanigans
   

   ... From its initial public offering ("IPO") in April 1997 until it ... public company (it
   went public in April ... and amortization" and "Acquired in-process research and ...

4. Equity Research
   

   ... However, in the process of examining the proxy statements ... After obtaining the initial
   sample, we verified that the ... firms in the quarter after they go public. ...