Janella Fisher, Megan O’Brien, Patrick Horta, Samantha Barba, Jarrod Holiway
FIN/370
March 16th, 2015
Thomas Gruber
Initial Public Offerings Paper When an organization goes global many outside factors can help the organization as well as work against it. There are many risks that are involved when dealing with foreign exchanges and an organization must understand how to deal with those risks and issues that may arise. Making public offerings presents risks as well and this is where those closest to the organization help protect and maintain the organizations image. The following paper will cover and address the issues and risks involved with an organization becoming a global firm as well as ways to mitigate any issues that may present themselves during the duration of the company’s transition.
Role of Investment Banker and Underwriter
One of the primary ways to raise capital for a company is the sale of stocks and bonds. Special expertise is required when executing these transactions, which is done in a way that will exploit income to directing regulatory necessities when assessing implements. At this point is when an investment bank typically comes into play. Large enterprises and the investors are the investments banks bridges. Their primary goals are to instruct organizations and governments on how to see their business challenges are and how to support them. The role of underwriters typically obtains underwriting fees from their issuing clients. Underwriters also gain revenues by marketing underwritten dividends to venture capitalists. Underwriters may take responsibility for issuing a safety issue to the community.
Role of Originating House and Syndicate When a company is preparing for an initial public offering, it must go through an originating house or a syndicate. The originating house is an investment or brokerage firm that manages the underwriting and sale of a new issue of stock to the general public. When the
References: Mayo, H.B. (2012). Basic finance. An introduction to financial institutions, investments, and management (10th ed.). Retrieved from The University of Phoenix eBook Collection database. Sargeant, Nicola (2015) “What Risks Do Organizations Face When Engaging In International Finance Activities? http://www.investopedia.com/ask/answers/06/internationalfinancerisks.asp