Initial Public Offerings
When a corporation needs to raise capital quickly, it either issues debt securities (bonds) or sells equity (company stock) .The corporation can have a primary offering, if it has sold stock before, or an Initial Public Offering (IPO), if it has never sold stock. Keep in mind that of all the options described in this section, an IPO is the most difficult and time consuming.
Who Should Apply:
Businesses seeking large amounts of capital in a short timeframe
Compare:
Advantages
Businesses can raise larger amounts of capital than from a traditional bank loan.
There are no application or processing fees.
Disadvantages
It is a difficult, time-consuming, and costly process.
