Publicly Traded Companies

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: there are a number of contributions possible for each of the elements. Each student should offer a contribution that has not already been posted by a classmate.

Use the numbers for each element to organize your initial post.

List one way a company would benefit from an IPO. Explain in one paragraph.

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

Many changes in reporting standards have been enacted as a result of financial scandals. Identify one specific change in reporting standards or requirements for a publicly traded company and explain why this is important.

NOTE: The Sarbanes-Oxley Act is the most frequently mentioned change. 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.