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Initial public offering

An initial public offering (IPO) or stock market launch has slipped into everyday speech during the tech bull market of the late 1990s. This is where shares of stock in a company are sold to the general public, on a securities exchange, for the first time. A company can raise money by issuing either debt or equity. If the company has never issued equity to the public, it's known as an Initial public offering.

Companies fall into two broad categories: private and public.
  1. Private companies

    : A privately held company has fewer shareholders and its owners don't have to disclose much information about the company. Anybody can go out and incorporate a company: just put in some money, file the right legal documents and follow the reporting rules of your jurisdiction. Most small businesses are privately held. But large companies can be private too. Did you know that IKEA, Domino's Pizza and Hallmark Cards are all privately held?

    It usually isn't possible to buy shares in a private company. You can approach the owners about investing, but they're not obligated to sell you anything. Public companies, on the other hand, have sold at least a portion of themselves to the public and trade on a stock exchange. This is why doing an Initial public offering is also referred to as "going public." Through this process, a private company transforms into a public company. Initial public offerings are used by companies to raise expansion capital, to possibly monetize the investments of early private investors, and to become publicly traded enterprises.


  1. Public companies

    : Public companies have thousands of shareholders and are subject to strict rules and regulations. They must have a board of directors and they must report financial information every quarter. In the United States, public companies report to the Securities and Exchange Commission (SEC). In other countries, public companies are overseen by governing bodies similar to the SEC. From an investor's standpoint, the most exciting thing about a public company is that the stock is traded in the open market, like any other commodity. If you have the cash, you can invest. The CEO could hate your guts, but there's nothing he or she could do to stop you from buying stock.
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Going public raises cash, and usually a lot of it. Being publicly traded also opens many financial doors:
  1. Because of the increased scrutiny, public companies can usually get better rates when they issue debt.
  2. As long as there is market demand, a public company can always issue more stock. Thus, mergers and acquisitions are easier to do because stock can be issued as part of the deal.
  3. Trading in the open markets means liquidity. This makes it possible to implement things like employee stock ownership plans, which help to attract top talent.

Though there are several disadvantages to completing an initial public offering:
  1. Significant legal, accounting and marketing costs, many of which are ongoing
  2. Requirement to disclose financial and business information
  3. Meaningful time, effort and attention required of senior management
  4. Risk that required funding will not be raised
  5. Public dissemination of information which may be useful to competitors, suppliers and customers.
Let's say you do get in on an Initial public offering. Here are a few things to look out for.
  1. No history

    : It's hard enough to analyze the stock of an established company. An IPO company is even trickier to analyze since there won't be a lot of historical information. Your main source of data is the red herring, so make sure you examine this document carefully. Look for the usual information, but also pay special attention to the management team and how they plan to use the funds generated from the IPO.
  2. The lock-up period

    : If you look at the charts following many Initial public offerings, you'll notice that after a few months the stock takes a steep downturn. This is often because of the lock-up period.

    When a company goes public, the underwriters make company officials and employees sign a lock-up agreement. Lock-up agreements are legally binding contracts between the underwriters and insiders of the company, prohibiting them from selling any shares of stock for a specified period of time. The period can range anywhere from three to 24 months. Ninety days is the minimum period stated under Rule 144 (SEC law) but the lock-up specified by the underwriters can last much longer. The problem is, when lockups expire all the insiders are permitted to sell their stock. The result is a rush of people trying to sell their stock to realize their profit. This excess supply can put severe downward pressure on the stock price.
  3. Flipping

    : Flipping is reselling a hot IPO stock in the first few days to earn a quick profit. This isn't easy to do, and you'll be strongly discouraged by your brokerage. The reason behind this is that companies want long-term investors who hold their stock, not traders. There are no laws that prevent flipping, but your broker may blacklist you from future offerings - or just smile less when you shake hands.
  4. Avoid the hype

    : It's important to understand that underwriters are salesmen. The whole underwriting process is intentionally hyped up to get as much attention as possible. Since IPOs only happen once for each company, they are often presented as "once in a lifetime" opportunities. Of course, some IPOs soar high and keep soaring. But many end up selling below their offering prices within the year. Don't buy a stock only because it's an Initial public offering - do it because it's a good investment.

The daytrader

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      Traders violate it surprisingly often!
  7. Initial public offering
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Make money with MySpace

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Do you have a MySpace Account? Enjoy hanging out on MySpace or Facebook? You can also earn money from this! Get Free Followers provides you nice and easy way to cash in on your MySpace Account.

MySpace and Facebook are both powerful marketing tools that aren't exploited at their full potential. Even they have hundreds of millions users, only a very small part of these users know they can earn thousands of dollars using MySpace or Facebook.

There are 2 ways you can make money with MySpace in Get Free Followers :

  1. Add MySpace Connections to your account.
    You add your account for others to connect it in Get Free Followers and increase the MySpace Connections. This will boost traffic to your pages that you hve posted on your MySpace stream. You only have to host some advertisement in your pages now, which will convert that MySpace traffic to a sizeable revenue.
  2. Earn Coins sending MySpace Connections request to other users!
    Even if you don't have others to connect you and see your stream, you can still make some bucks daily by just sending other MySpace users Connection requests - with the help of Get Free Followers tool.

    Very simple! When you connect other users' accounts in Get Free Followers, you get some coins. Then you can convert these coins to REAL money from the Coins to Cash section and withdraw that whenever you want - minimum amount required for withdraw is only $1!

Above 2 sections will take you through a detailed how-to article to explain how you can make money with MySpace. Sure, it's easy to get frustrated by the overblown bells and whistles that go along with a typical MySpace visit, but there are many reasons why it's still a useful tool for musicians looking for gigs, fans, and exposure.

  1. Fans are taken right to the music

    - Pretty much everyone looking for music on the web knows this, so MySpace is one of the first stops when looking for a particular song. It's a no-frills way to hear the latest single from a band.
  2. Standardized site for clubs/press to link to

    - Regardless of how fancy and flashy your official website might be, Myspace makes it relatively easy to access all your basics. Many clubs and press outlets still prefer to post links to MySpace over the band's official site.
  3. It's an actual web presence

    - Sure, Facebook is a bit cleaner and has more buzz in the social media world, but MySpace does not require users to sign up in order to access the content. This makes for a quick and easy web presence that anyone can check out.

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  1. MySpace Music Like
    MySpace has a high value because of it's massive userbase, making it potentially rich source of advertising income. Given the audience is a young demographic it's a very lucrative market for advertisers.
  2. Make money with MySpace
  3. MySpace Music Play
    Let people know about your MySpace Music. Create a widget or a song, or a video or an image and attempt to 'infect' the MySpace community with it - using Get Free Followers.
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    Need comments / download / subscribers for your tracks in Reverbnation?
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      Get on the Reverbnation Trending Now list with the help of Get Free Followers!
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