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.
In the first paragraph: 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
Second paragraph: Many changes in reporting standards have been enacted as a result of financial scandals. Identify one specific change in reporting
standards or requirements made within the last 20 years for publicly traded companies (by Sec. number or Act) and explain why this is important.
NOTE: The Sarbanes–Oxley Act is the most frequently mentioned change. It contains seven titles with many sections included in each title.