Many companies selling stock to the public for the first time-initial public offerings (IPOs)-are not yet profitable.

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Many companies selling stock to the public for the first time-initial public offerings (IPOs)-are not yet profitable. According to a report issued by the research firm Sageworks, almost half of the companies listing IPOs are not yet profitable. Amazon is a notable example.

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Why do you think companies pursue IPOs, and why do you think investors buy the stocks of companies yet to report profits?

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Financial Accounting

ISBN: 978-1119745327

11th Edition

Authors: Jamie Pratt, Michael F Peters

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