As a company grows in profitability and size, they may decide to go public. But what does this mean? A company that is public means that people can purchase a portion of the company. This is generally a smart option for SOME companies to earn more revenue and to expand their business.
1. What is an IPO?
2. IPO Stands For:Initial Public Offering 3. Definition The Initial Public Offering is the first time a companys shares are available to the public for buying and selling. 4. Whats Necessary For Going Public? Not every company can nor should go public Need a certain amount of earnings in previous yearsThe SEC (Securities Exchange Commission) requires that companies have 3 years of audited financial statements 5. The Benefits Boost in revenue for growth and expansion Prestige and public recognition Can act as a great marketing event for PR 6. The Downside Loss of complete control of your company SEC can force you to reveal privately information You must answer to a board of investors 7. The Plight of a Growing Business 8. Sharing business with the public 9. Continue this cycle to earn more revenue