What is an IPO prospectus? ( example)
On the cover, you can see the name of the lead investment banker, which in this case is Goldman Sachs, of course, they choose themselves then you have got the other firms, you’ve got Bear, Stearns & Co. Inc.( no longer exists),Lehman brothers(no longer exist), Morgan Stanley, Credit Suisse. You have a bunch of other firms as well
It has a number of shares on the top
And When you open it up you get the use of proceeds,( meaning what are they going to use the money for that they raised in the IPO).
part of it is for general business purposes. maybe acquiring other companies to grow or opening new offices or hiring more peoples.
the other part of it actually is to pay their employees.
After that, you have got more information about the company.
you have got every risk you can possibly imagine as well listed in here.this is what looks like a prospectus. This is also referred to as an S-1.you can go to www.sec.gov and do a search for S-1 for any company. So check out Facebook go to www.sec.gov and ticker on Facebook is FB, and then try to find out S-1.it has every bit of information you need to know about making an informed decision before deciding whether or not to participate in an IPO.
