14. Initial Public Offering

  1. Steven M. Bragg

Published Online: 13 DEC 2011

DOI: 10.1002/9781118268391.ch14

The New CEO Corporate Leadership Manual: Strategic and Analytical Tools for Growth

The New CEO Corporate Leadership Manual: Strategic and Analytical Tools for Growth

How to Cite

Bragg, S. M. (2011) Initial Public Offering, in The New CEO Corporate Leadership Manual: Strategic and Analytical Tools for Growth, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118268391.ch14

Publication History

  1. Published Online: 13 DEC 2011
  2. Published Print: 11 JUL 2011

ISBN Information

Print ISBN: 9780470912874

Online ISBN: 9781118268391

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Keywords:

  • American Stock Exchange (Amex);
  • chief executive officer;
  • cost of capital;
  • initial public offering (IPO);
  • Nasdaq Stock Market (Nasdaq);
  • New York Stock Exchange (NYSE);
  • shell corporation;
  • small corporate offering registration (SCOR)

Summary

The initial public offering (IPO) is considered by many chief executive officers (CEOs) to be the true sign of success-they have grown a business to the point where its revenue volume and profitability are large enough to warrant public ownership. This chapter describes the pluses and minuses of being public as well as the steps required and cost to be incurred in order to achieve that goal. The process of becoming a public company begins with the search for a qualified underwriter. The underwriter wants to sell in excess of shares during the IPO, not only to create an active trading market for the stock but also to meeting the minimum outstanding shares rules of the stock exchanges. The chapter also explains an open IPO offering, the purchase of a shell corporation, and a small corporate offering registration (SCOR) offering.

Controlled Vocabulary Terms

chief executive officer; Cost of capital; IPO