Understanding Business
Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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Chapter 19.3, Problem 19.3AQ
Summary Introduction

To discuss: The way that the issuing stock can be an appealing option for financing a company’s growth.

Introduction: Initial public offering (IPO) refers to the issue of shares by the company to the general public.

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Research and prepare the following for active discussion in no more than 300 words. 1. What is Common Stock and what is its relationship with an IPO? 2. How does a company go about issuing Common Stock? 3. How does Common Stock differ from Preferred Stock - EXPLAIN!!!
Is an initial public offering (IPO) an example of a primary or a secondary market transaction? Explain
(1) Would a profitable small business with onlymoderate growth potential be a good candidate forventure capitalist funding? Why or why not? (2) Whywould angel investors help finance companiesprivately, rather than buying shares of publicly tradedcompanies?
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