1. Dylan Guss and Jason Rosenfeld

2.  Private vs. Public  Most companies are private Small family business with some exceptions (e.g. Mars)  Usually, private businesses have fewer shareholders (that are partners or limited partners)  Private company structure examples: partnership, limited liability company (LLC)

3.  General Partnerships are run by the general partners  These partners have full liability for the partnership’s actions, even if they were not explicitly involved  To avoid legal problems, partnerships will become Limited Liability Companies

4.  Stands for “Initial Public Offering”  A formerly private company will sell shares to the public on a stock exchange  This process places an additional layer of regulation on the company

5.  NYSE, NASDAQ, AMEX, London, etc.  About 18 major exchanges

6.  To create a liquidity event for its investors  To diversify the portfolio of the investors so as to reduce risk  To raise capital so as to increase equity and value

7.  Disclosure  Accounting transparency  Costs for legal and accounting  Exchange listing fee (yearly)

8.  Find investment banks  Communicate with the banks as they value your company  The investment bank creates a prospectus for the company’s new security issuing  Executives travel globally to put on a “roadshow”  The investment banks find clients for the new security

9.  Assigned IPO luncheons of possible firm investments  Skim prospectus  Attend roadshow Specifically noting: Attendance, Questions asked, Management Predictions  Report to research staff

10.  Underwriters BofA Merrill Lynch, Morgan Stanley, etc.  Valuation: Between $17.00 and $19.00 Eventually priced at $20, now at $13  Risk Factors involved Stagnant Innovation, Reputation tarnishing/ Sponsorship Maintenance, International expansion risk