Discussion Assignment Unit 6 financial management

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Nov 24, 2024

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Discussion Assignment Unit 6 Financial Management Task In the discussion forum, you are expected to participate often and engage in deep levels of discourse. Please post your initial response as early as possible and continue to participate throughout the unit. You are required to post an initial response to the question/issue presented in the Forum and then respond to at least 3 of your classmates’ initial posts. You should also respond to anyone who has responded to you. Your Discussion should be a minimum of 250 words in length and not more than 450 words. Please include a word count. Following the APA standard, use references and in-text citations for the textbook and any other sources. For this week's Discussion:  Describe the Initial Public Offering (IPO) process in the USA to include critical events and points-in-time. Response This week was quite interesting and opened our minds to the process of public offering. Organizations, establishments, corporations and companies of all types and sizes require funding or support throughout their business tenure. IPO is simply defined as an preliminary public offering or a confidentially owned company lists its stocks or dividends on a stock exchange, requiring them accessible for buying by the general public. ( Ashford, K. & Schmidt, J. (2021, August 21). There are numerous respective methods and or approaches that a business can use to raise money. This is where the Initial Public Offering comes into play. There are seven steps that a business ought to go through to complete its IPO , these include: 1. Reputation 2. Quality of research 3. Industry expertise 4. Network distribution reach 5. The company's prior relationship with the investment bank 6. The underwriter's past relations with other companies. Due diligence: In this process both the company and the underwriter must fill out many forms and register with the SEC (Securities and Exchange Commission) as well enter into a

contract with the underwriter. The following key documents must be signed and agreed upon by both the business and the bank: 1. Firm commitment 2. Best effort agreement 3. Syndicates of underwriters 4. Engagement letter 5. Letter of intent 6. Red herring document ( U.S. Securites and Exchange Commission. (2019, July 15). The IPO roadshow: In this part of the process the business has to make the rounds with investors in order to create interest in the IPO which will may increase the initial price of the IPO and or help the investment banker gauge the number of shares to sell ( One Minute Economics. (2019, August, 1) IPO Pricing: This process requires notification to the SEC that addresses, pricing, date, and number of shares that will be sold. ( One Minute Economics. (2019, August, 1) Going Public: At this step of the process a decision has been made and the investment bank will release the shares into the market on the approved date ( IPO stabilization: In this part of the process the investment bank has the opportunity to manipulate the price of the IPO usually within a 25-day period. The method used is through a process call Reference: Ashford, K. & Schmidt, J. (2021, August 21). What is an IPO? Forbes Advisor. https://www.forbes.com/advisor/investing/initial-public-offering-what-is-an-ipo/ Nyse Ipo Guide. (n.d.). NYSE IPO Guide. Retrieved from https://www.nyse.com/get- started/ipo-kit One Minute Economics. (2019, August, 1). Initial public offerings (IPOs) explained in one minute: From definition/meaning to mrocess/examples. [Video]. YouTube. Retrieved from U.S. Securites and Exchange Commission. (2019, July 15). SEC enforcement actions: Insider trader cases. Retrieved from https://www.sec.gov/spotlight/insidertrading/cases.shtml

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Discussion Assignment Unit 6 financial management

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