What Expert Says: Adam S. Tracy, Attorney Explains IPO and its aspects?

Adam S. Tracy Attorney, a successful business attorney, speaks on corporate and securities law matters. He explains how an IPO matters for a business and what is all involved in the IPO process.

Adam S. Tracy Attorney - A long time ago, IPOs were considered to be a complicated procedure and even came as an ending phase for many startups. But, today, the thinking of marketing people and businesses about the concept of IPO has changed. Here, know how the IPO process works in the words of Adam S. Tracy attorney.

What is an IPO?

IPO, which stands for Initial Public Offering, is the process by which a business or private company goes public to sell its stock shares to the general public (various groups of investor population) for the first time. Before going through the IPO process,a private company may have a few or no shareholders who are not subject to regulations by the Securities and Exchange Commission (SEC). While after conducting an IPO, the company gathers a number of shareholders while expanding their business effectively.

Why conduct an IPO?

In simple words, an IPO is an effective way to raise funds by selling company shares publicly, which later can be used for various purposes, like expanding business, re-invest in the company, paying for company expenditures, and buying other businesses. Here, have a quick look at some of its main benefits:

· Raising company capital for paying dept and expanding business

· Marketing business and attracting investors, partners, and customers through its offers and stock deals

· Enhancing prestige and make a prominent place in the market

· Acquiring other businesses or small companies and do deals by using stocks

What are the steps involved in an IPO?

When going public, the very first thing a company does is hiring an investment bank for the underwriting (handling of an IPO by an investment bank). However, a company can sell its shares on its own, which is a rare case in reality.

In a company’s IPO, there may be a group of investment banks working alone or together on the IPO. Initiating the process, the investment bank discusses with the company how much fund or money will be raised as a result of the IPO, what is their share in the raised money, security type the company will be issued and other necessary underwriting details.

After the underwriting deal is finalized, the bank sets up a registration statement, which includes legal issues, financial data, offering information, management background, and other relevant information. This detailed statement is submitted to the SEC, which in turn investigate for the verification of the company details and other information under the underwriting agreement. After the SEC approves for the IPO, a date is fixed for the company to go public to sell its shares.

Also, after the approval for the IPO, a prospectus including all the necessary information regarding the company is put together by the underwriter. Then, the underwriter meets the company (promoters) to decide on the price of the stocks, depending on the current condition of the market.

So, this is how the whole IPO process works, as Adam S. Tracy says. Moreover, the article clearly explains that IPO is not an easy process for any business and takes a lot effort to put together.

Adam Samuel Tracy is well known content writer. He has a lot of experience of content writing. He wrote many articles on the topic of Adam S. Tracy and Adam S. Tracy Attorney.

Source: http://www.articlesbase.com/law-articles/what-expert-says-adam-s-tracy-attorney-explains-ipo-and-its-aspects-7176613.html

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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