Business > CASE STUDY > 8 2 Raising Capital Through Equities.doc FIN - 620 Raising Capital Through Equities Sou (All)

8 2 Raising Capital Through Equities.doc FIN - 620 Raising Capital Through Equities Sou

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8 2 Raising Capital Through Equities.doc FIN - 620 Raising Capital Through Equities Southern New Hampshire University FIN-620 Raising Capital Through Equities For a company to maintain its opera... tion and reach its business objective, a company must secure funding from different avenues of financing. There are many ways a company could generate cash flow. Looking for the most cost-effective way for the company to raise the capital that it needs. A company has three options to raise capital: an initial public offering (IPO) or follow-on option (sometimes called a "seasoned" equity offering), and the final being the at-the- market offering (ATM). Depending on where the company is at, either being a private company or public, each option provides the company a way to gain capital funding. If a company is still a private holding, its first option would be to raise capital through an IPO. "An IPO comprehensively consists of two parts. The first is the pre-marketing phase of the offering, while the second is the initial public offering itself" (Fernando, 2021). The follow-on option is good for the company to add more shares to the open market to raise more capital. The downside, it could dilute the stock and lower the value of the stock. "An ATM program allows a public company to raise modest amounts of capital over time by offering securities into the already existing trading market" (Hirshberg, 2020). Making an ATM offering allows a company to maximize the stock when it is at its highest price. J.P.Morgan Chase Ra. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [Show More]

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