An Initial Public Offering (IPO) is a major milestone for a company. This is a very expensive and time-consuming process. It does not come without a lot of forethought and judicial weighing of the pros and cons. We will start this conversation by looking at some of the reasons why a company would decide to take the steps to become a publicly traded corporation. What pros and cons have to be weighed?

Instructions - Use the numbers in the instructions to organize your post and ensure that you meet all requirements.

1. The #1 benefit of an IPO is the capital that is raised. List one additional way a company would benefit from an IPO. Explain in one paragraph.

2. List one use of additional capital. Explain the benefit in one paragraph.

3. Many changes in reporting standards have been enacted as a result of financial scandals. Identify one specific change in reporting standards or requirements for publicly traded companies and explain why this is important. Identify the change by the title of the act or section number.

NOTE: The Sarbanes-Oxley Act is the most frequently mentioned changed. It contains many individual provisions. Break it down to one provision that has not been mentioned by a classmate. There are a number of more recent changes to select from as well.