From Private to Public Why Instructions Going public refers

From Private to Public: Why? Instructions Going public refers to a private company\'s initial public offering (IPO) which can be alternative forms of funding. Go online and find at least two (2) companies that are making public their plans to have an IPO. Prepare a research outline about the IPO process and answer the following questions. . What do you think about the number and percentage of companies going public? . What are the advantages and disadvantages for a company going public? . Are IPOs available to sell immediately upon trading or is there a time limit that must pass before sales are accepted?

Solution

Two companies that are planning for IPO

Bloom energy

Dropbox

Number and % of company going public

There are many number of companies going public however grand In USA has been declined in last few years for going to public companies..

However it is better option go public as it have many advantage to go through it and use public money for better growth and expansion of business..

As per my estimate about 70% of companies have been going public even though the trend of going public has been declined..

Advantage.

1) ability to raise capital quickly from different investor

2) There\'s also the prestige of being listed on a major stock exchange to consider, which is a motivator for some companies that go the IPO route.

3) IPOs can help growing companies attract new talent by offering perks like stock options.

Disadvantage

1)One major drawback of going public using an IPO is the time and expense of going through the process.

2) costs money to go through with an IPO, from financial service and underwriting fees to filing fees

3)Once a company goes public, it must answer to its shareholders.

As determined by the Securities and Exchange Commission, which is in charge of IPO regulation in the United States, the underwriters of the IPO are not allowed to lend out shares for short sale for 30 days

So generally there is time limit of 30, days during which sale can not be sale..