Successful IPOs require more than big dreams; after much work, Rambus' IPO yielded liquidity and profile, but both will take getting used to
Article Abstract:
Gail Clayton Husick and J. Michael Arrington, lawyers at Wilson Sonsini Goodrich and Rosati who have written a book on initial public offerings, caution that going public has disadvantages even for fledgling companies destined to do very well. The IPO process distracts management for a long time, a prospective IPO brings restrictions on marketing activities, public companies face burdensome SEC reporting requirements, and legal and accounting fees increase on a permanent basis. For companies unable to attract strong underwriters, going public may be an especially bad idea.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1998
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Internet is seeing its share of securities offerings; rise in Web-based services for small issuers helps make online route a more viable alternative
Article Abstract:
There was, until the mid-1990s, little meaningful use of the Internet for primary securities offerings. In 1995 came the pioneering Web-based $1.6 mil Spring Street Brewing Co initial public offering. Other small companies have taken the same path since the Spring Street offering. The Internet will be used more often as an alternative to traditional ways of raising capital as the novelty of Web-based business wears off, the two main issues in such transactions being their legality and economic viability.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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