Overview

identifies the factors considered when making the decision to become a publicly traded company. You address the pros and cons of that action. The value of financial reports to various users is explored along with changes in reporting standards. Publicly Traded Companies An initial public offering (IPO) is a major milestone for a company. This is a very expensive and time-consuming process. It does not come without a lot of forethought and judicial weighing of the pros and cons. We will start this conversation by looking at some of the reasons why a company would decide to take the steps to become a publicly traded corporation. What pros and cons must be weighed?

Outcomes

1. Apply financial ethics to accounting reporting standards, practices, and managerial dilemmas.
2. Identify the factors considered when deciding to become a publicly-traded business.

Instructions

Use the numbers in the instructions to organize your post and ensure that you meet all requirements.

1. The number one benefit of an IPO is the capital that is raised. List one additional way a company would benefit from an IPO or list one use of the capital to strengthen and grow the company. Briefly explain the benefits.

2. Many changes in reporting standards have been enacted as a result of financial scandals. Identify one specific change, made in the last twenty years, to reporting standards or requirements for publicly traded companies (by Sec. number or Act) and explain why this is important.