Welcome to Initial Public Offering Guide
Initial Public Offering Definition Article
This is a selection made from among articles on Initial Public Offering Definition. For a permanent link to this article, or to bookmark it for future reading, click here.
Beware of Possible Initial Public Offering Scandal and Protect your Investing Career
from:
Successful investors are knowledgeable about the “ins and outs” of the market. Aside from understanding the basics that surrounds the world of business venture, successful investors are knowledgeable about the moral conduct and implications of their conduct towards their business venture. In other words, in order to succeed on a particular investment, an investor must swear before his colleagues that he will conduct his business in a morally-upright way and within fair competition.
Let us take a look on the first characteristic of a successful investor. As mentioned earlier, he must be knowledgeable about the basics of business venture. He knows what are the things he needs to do before getting into business (business plan, appropriate strategies, advertising and public relation plans, and others) and how he will act appropriately on certain circumstances (such as shortage in production, increased business risk due to debt, and bankruptcy).
Supposedly you are in the situation wherein you need additional finances to sustain the increasing growth of your business operation. Where will you get such finances? Definitely, it is not ideal to borrow additional capital through lending institutions. The profit that you can generate from expanding your business operation will just be used to pay your creditors. Instead of profit, you will end up break-even (no loss, no gain). The efforts you have given are just wasted.
So how will you act appropriately on such circumstances? A successful investor will instead resort to going public, or what you called in the finance industry as “initial public offering”.
Initial public offering or IPO refers to the first sale of a company’s common shares to the public. Its principal purpose is to raise additional capital that will be used to sustain the growing expenditures of a particular company. It typically involves several investment banks that will act as the underwriters for the whole process. The company as the issuer will draft a prospectus containing all the necessary information about the company itself (background, history, financial status, and others) and will be submitted to the Securities and Exchange Commission for approval.
Once approved and the prices of the common shares are now finalized, such shares will undergo the free riding period wherein it will now be offered for sale to the public through various ways such as institutional visits and others.
Let us take a look on the second characteristic of a successful investor and then relate it to the conduct of the IPO process. If you think that scandal is just within the premises of the White House or within the legislative halls of the United States Congress, you are quite mistaken, for scandals also happens within the IPO process.
Nowadays, going public is no longer an automatic decision because of the scandals that have changed the landscape for IPO. Most of the personalities involved in such scandals turned out to be the losers now because of their immoral acts just to generate more profit out of the IPO process.
Want to know some of the corporate scandals that happened in IPO process? Take a look on the following:
• When AOL Time Warner went public in July 2002, the free riding period during the IPO process faltered, resulted to barter deals just to compensate the losses incurred, which is against the finalized price arrangements of their common shares.
• When Enron went public in October 2001, several corporate officials used illegal methods of acquiring wealth out of the IPO process by improper usage of off-the-books partnerships, bribed foreign government officials and representatives to win international contracts, and manipulated Texas and California energy markets. It resulted to the court conviction of their former corporate executives.
These are just two of several initial public offering scandals that happened during the recent years. Now, do you want to be a successful investor? If you want, then use the scandals happened as a moral lesson and do not commit the same mistakes or it will be the end of your investing career.
Initial Public Offering Definition News
Facebook Follows Netscape and Google as a Generation-Defining Internet IPO ... - Minyanville.com
 Wired.co.uk | Facebook Follows Netscape and Google as a Generation-Defining Internet IPO ... Minyanville.com By Michael Comeau Feb 02, 2012 10:50 am Yesterday afternoon, after an excruciatingly long day, social-media giant Facebook finally delivered its S-1 document for its long-awaited initial public offering to the the good folks over at the SEC. Facebook's IPO Filing: A Quick Read Facebook's IPO: what does it mean for Zuckerberg, investors and you? Facebook finally files its IPO |
Facebook and Its Big Stock Offering - Voice of America
 CBS News | Facebook and Its Big Stock Offering Voice of America The documents are required before the company can make its initial public offering, or IPO. A date for the stock sale has yet to be announced. Experts say Facebook could raise about five billion dollars. That would be one of the biggest IPO sales ever. Facebook files for $5bn IPO Facebook calls you an active user even if you don't use the site Rich, Rich Facebook |
It's Not About You, Facebook. It's About Us. - New York Times
It's Not About You, Facebook. It's About Us. New York Times “This company is reshaping how we think about ourselves and define ourselves and our digital selves.” The symbiotic relationship between Facebook and its users came into sharp focus when the company filed for its initial public offering, revealing just ... |
Facebook promotes Timeline heavily ahead of IPO with apps like Movie Maker - Inside Facebook
 USA TODAY | Facebook promotes Timeline heavily ahead of IPO with apps like Movie Maker Inside Facebook The company is showing maturity as it prepares to file for an initial public offering that could raise at least $5 billion for the company. Timeline will be mandatory for all users within weeks, but users have been able to opt in since December. Facebook Timeline Movie - Made For You, Made By You! |
Petri: Here's an IPO bigger than the rapture - Denver Post
 CTV.ca | Petri: Here's an IPO bigger than the rapture Denver Post We will be too busy with the Facebook IPO to deal with Him. "That's very nice, Lord," we'll say, escorting Him to a chair in the corner. "But we're looking at an initial stock price of $100! Initial! Do you know what that means?" "Stop talking to Him; ... Facebook's million active users may not actually visit |
The Facebook ETF Effect and the Reality - Barron's (blog)
The Facebook ETF Effect and the Reality Barron's (blog) But they still can't help the little guy enjoy the early pop of hot initial public offerings, and they won't do it for Facebook. About the best to be said for ETFs and the IPO market is that the warm, fuzzy feeling can rub off. |
Whistler Blackcomb Holdings Inc. Reports Fiscal 2012 First Quarter Results - MarketWatch (press release)
Whistler Blackcomb Holdings Inc. Reports Fiscal 2012 First Quarter Results MarketWatch (press release) The variance is due to the following factors: The Corporation completed its initial public offering and its acquisition of a 75% interest in each of Whistler Mountain Resort Limited Partnership and Blackcomb Skiing Enterprises Limited Partnership on ... |
Facebook user figures not entirely accurate? - Internet Marketing News
 Sydney Morning Herald | Facebook user figures not entirely accurate? Internet Marketing News The social media site – popular for social media marketing campaigns – claimed in the filing of its IPO (initial public offering) that it had around 845 million active users per month and 483 million active users per day. Facebook IPO Will Boost 1%, But the Rest of Us Won't Be Sharing |