Conclusions

An initial public offering (IPO) is the first sale of stock by a company to the public.

Going public raises cash and provides many benefits for a company.

Companies hire investment banks to underwrite an IPO.

The road to an IPO consists mainly of putting together the formal documents for the Securities and Exchange Commission (SEC) and selling the issue to institutional clients.

The price of shares depends on the company, the success of the road show, demand, and, most importantly, current market conditions.

References

1.http://www.cnbc.com/2014/09/17/alibaba-how-an-ipo- gets-done-step-by-step.html

2.http://www.investopedia.com/university/ipo/

3.https://en.wikipedia.org/wiki/Initial_public_offering

4.http://securities.lawyers.com/initial-public-offerings/steps- in-the-ipo-process.html