Page 2 - IPO Udemy course

WHAT IS AN IPO?
An initial public offering (IPO) is the first sale of stock issued by a private company to the public. IPOs are usually issued by smaller, developing companies seeking capital to expand, but they can also be done by large privately owned companies looking to become publicly traded.
Preceding an IPO a company is considered private, with a small number of investors primarily the entrepreneurs, friends & family and professional venture capitalists.
An IPO is a huge step for a company. It provides the company with access to raising new money. This gives the company a greater possibility to grow and advance. The increased transparency and share listing credibility is also a factor in helping the name and reputation of the company.
The transition from a private to a public itis hard. The company becomes required to disclose financial, accounting, tax, and other business information.
After a company goes public, they will also be subject to rules and control. They have to name a board of directors and report accounting material to the regulatory entity. in Wall street is Securities and Exchange Commission (SEC).