Describe an initial public offering for a global firm (Red Bull). 150 - 200 words with reference A discussion of some of the risks involved in the public offering and how the securities laws deal with them Please do not plagiarize. Only original work needed. Solution Initial public offering(IPO) Initial public offering (IPO) is a public offering in which shares or stock of a company are sold to institutional investors that in turn, sell to the general public, on a security exchange, for the first time. A company selling shares is never required to repay the capital to its public investors. After the IPO, when shares trade freely in the open market, money passes between public investors. Initial public offerings are mostly used by companies to raise the expansion of capital, possibly to monetize the investments of early private investors, and to become publicly traded enterprises. Risks involved in the public offering and how the securities laws deal with them There are many risks involved in IPO. Many companies that are going public for the first time are new. Therefore, when one invests in public offering stocks they are sharing the risks of the company. If the company goes under, the investor can stand the chance of losing his or her investment .Initial public offering (IPO) may be a risky investment because of the following reason How the securities laws deal with them The SEC does not regulate how the business decisions and how IPO shares are allocated(\"U.S. Securities And Exchange Commission\", 2014). However, once a company decides to go public, they must register with the SEC under the Securities Exchange Act of 1934. At the time of the registration process they provide information regarding their financial state and business operations. In addition to federal securities law, a company may also have to comply with state securities laws, also known as \"blue sky\" laws (Inc., 2014). Foreign Exchange Risks a Company Can Face and How to Mitigate Them Like any investment, either buying or selling, there are inherent risks involved. The foreign exchange risk incorporates not only the inflation of the parent country, but the inflation, economic stability, and political standings of the foreign countries. The initial evaluation of any risk is to identify the source of the risk and then find a way to minimize it..

1. Describe an initial public offering for a global firm (Red Bull). 150 - 200 words with reference
A discussion of some of the risks involved in the public offering and how the securities laws deal
with them
Please do not plagiarize. Only original work needed.
Solution
Initial public offering(IPO)
Initial public offering (IPO) is a public offering in which shares or stock of a company are sold to
institutional investors that in turn, sell to the general public, on a security exchange, for the first
time. A company selling shares is never required to repay the capital to its public investors. After
the IPO, when shares trade freely in the open market, money passes between public investors.
Initial public offerings are mostly used by companies to raise the expansion of capital, possibly
to monetize the investments of early private investors, and to become publicly traded enterprises.
Risks involved in the public offering and how the securities laws deal with them
There are many risks involved in IPO. Many companies that are going public for the first time
are new. Therefore, when one invests in public offering stocks they are sharing the risks of the
company. If the company goes under, the investor can stand the chance of losing his or her
investment .Initial public offering (IPO) may be a risky investment because of the following
reason
How the securities laws deal with them
The SEC does not regulate how the business decisions and how IPO shares are allocated("U.S.
Securities And Exchange Commission", 2014). However, once a company decides to go public,
they must register with the SEC under the Securities Exchange Act of 1934.
At the time of the registration process they provide information regarding their financial state
and business operations. In addition to federal securities law, a company may also have to
comply with state securities laws, also known as "blue sky" laws (Inc., 2014).
Foreign Exchange Risks a Company Can Face and How to Mitigate Them Like any investment,
either buying or selling, there are inherent risks involved. The foreign exchange risk incorporates
not only the inflation of the parent country, but the inflation, economic stability, and political
standings of the foreign countries. The initial evaluation of any risk is to identify the source of
the risk and then find a way to minimize it.