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Tue
5
Nov '13

Profits Companies

That year in a row talking about Ipo. Let's look at what it is. Ipo (from the English language ah-pee-on Initial Public Offering) means the mass withdrawal of domestic companies on stock exchanges. Or another statement, ipo – the first public sale of shares company includes the form of depositary receipts for sales promotion. If you go back to history, but in 2006 the world was conducted in 1729 IPO on the amount of 247 billion U.S.

dollars. What is the main purpose of IPO? The main goal is profit, which is called "founders." Profits derived by the founders of joint stock companies, which represented the difference between the sum from the sale of shares and capital actually invested by them in Joint venture. Why is the profit opportunity? It depends on what the stock price is a dividend, cost of capital yields a profit greater than the rate of%. I would also like to note that the emergence of public companies in certain areas of production, may lead to the fact that the capital will not bring high profit, but only a percentage. Another goal is ipo – increasing the company's liquidity. Shareholders after the IPO may freely sell the shares quickly and at market price.

Through the conclusion of the IPO you will be able to protect against absorption of unfriendly companies. Another argument in favor of the IPO, after you spend the IPO, your company becomes public, and that means – will be reporting clear and transparent. What are the stages of the IPO: a) The first – a preliminary stage. Analysis of the organizational structure and assets financial and economic situation, transparency of information. b) Second stage – preparatory. Chosen for the IPO team, with which he agreed plan of action. Documents are put together. Create an investment memorandum. After that, run an advertising campaign. c) The most basic step. At this stage the collection of all bids for the purchase of securities is determined by the price. Summarizing all the results. d) And finally – the final stage. Treatment securities. Assessment of success.

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