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"INITIAL PUBLIC OFFERINGS" - Research Paper Example
Author : esperanza35
Finance & Accounting
Pages 5 (1255 words)
INITIAL PUBLIC OFFERING Name: Course: Instructor: Date: AVG was established in 1991. The company was formed with the purpose of protecting internet and computer users around the world by using innovative technology (AVG Technologies Announces Filing for Proposed Initial Public Offering , 2012)…
AVG is a world leader in software development, threat detection, threat detection and risk analysis. The company also invests in research and development and collaborates with leading universities in order to maintain its technology edge (Company Profile, 2012). The company is currently contemplating to issue an IPO (initial public offering) so that it can expand its global market. The company has two options as to which type of IPO the company should use. The company may decide to either use the traditional IPO or use the online auction. In this research essay, I will discuss the two types of IPO issues and look into lessons learned from the module one case. The traditional approach to getting capital has usually been the way to go for most companies seeking equity. However, with the advent of the internet and technology some start-ups are choosing to do online auction in an effort to seek capital. Both types of IPO have have their pro and cons. I will start by analyzing the traditional IPO method before embarking on online auction analysis. As I had earlier mentioned that, the traditional IPO method is the most common way of getting capital. The traditional method has some advantages and disadvantages. Regardless of the type of IPO used, the company issuing an IPO usually has several benefits. First, the company increases it capitalization, net worth, liquidity and prestige. ...