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What is the meaning of the term “going public?” Why would a company want to “go...

What is the meaning of the term “going public?”

  1. Why would a company want to “go public?”

1.            Describe the roll of the investment banker in taking a company public.
2.            What is an IPO and what steps are taken in order to get the IPO ready for public offering?
3.            What does both the investment banker and the company that is going public want to happen on the first day of public trading for the company and why?

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Answer #1

The term "going public" means that a company previously known as private company going to change and known as public company. Now the should include the word "Ltd." at the to their name. To convert from private to public several procedures has to be follow. There is Initial Public Offer(IPO) when the company goes public for the first time.

Reasons/Benefits company wants to go public:

1. Broad and easy access to capital.

2. A way to exit for the angle investors.

3. To listed their shares in stock market.

4. Easy for acquisitions related aspects.

5. Greater financing opportunities.

6. Attaract new investors.ý

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