Difference between a privately and a publicly held company

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Initial Public Offerings

There is something exciting about being a part of an Initial Public Offering (IPO). Who can forget Martha Stewart banging the gavel at Wall Street's opening on the day her stock went public?

However, the reality is something completely different. While we remember Stewart at the top of her game, we also remember what happened soon after. Public companies are under much more scrutiny. In recent years, many companies have changed course and gone private.

For this assignment, address the following questions:

• What is the difference between a privately held company and a publicly held company? Explain your answers.

• What are the reasons why companies would choose to have an IPO? Why do some firms remain or go private? Explain your answers.

• Identify at least three regulatory agencies involved in an IPO. Explain their respective roles in such an offering.

• What are at least three of the government's requirements for a company that is considering going public?

• Is going public always the best strategy for a company? Why or why not?

 

Reference no: EM13836880

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