QUESTION 4

Companies often need external money to maintain their operations and invest in future growth. There are two types of capital that can be raised: debt and equity. Equity financing refers to funds generated by the sale of shares. The main benefit of equity financing is that funds need not be repaid.

a) Compare and contrast the different ways that companies can raise equity finance in an IPO. Your discussion should include examples of companies who have used the different IPO listing mechanisms.

b) Compare and contrast the different ways that companies can raise equity finance in an SEO. Your discussion should include examples of companies who have used the different SEO listing mechanisms.