IPO Rocket.com

Anisha asks:

Lets say a company(400,000 shares) wants to raise $1 million by selling half of the company(200,000 shares). would each share cost 5$?
If the same company wants to mainatin 70% of it’s shares(280,000) by selling only 120,000 shares, would each share cost $8.333?

This is my understaing of IPOs, so please if something wrong please tell me.
thank you
lithium
I didn’t understand?on what basis?

Madalene asks:

When a company holds an IPO it sells a determined amount of stock and receives the money as capital to use in growing the business. So how does a company benifit from their stock price increasing when they have already received the proceeds from the sale?

Stefany asks:

Supposedly, investing large amounts of money in post-IPO stocks simply locks that money away, and pulls it out of circulation. Is that true, and what effect does this have on the economy as a whole? (Is a lot of people with a lot of wealth sitting on their money, with it invested in stocks and only growing value for said people, a good thing or a bad thing?)

Sallie asks:

I own 5% equity in a store which I an 20 others made a deal for, for 2 million. The person who sold it too us used to make about 220,000 a year and now the STORE still makes about that and we split the profits. Anyway we want money from investors ro GROW and open new ones as the store does well and all you have to do in a corporation is repeat a process that works. So we need money from investors and in turn will try and give them a capitol gain on their investment; Anyway what is the best course of action I figured out some math and if we gave 40% equity to investors we could open another store but that is way too much Is there anything else we can do? WE really want to have an IPO HOW CAN WE DO THAT and if we can’t have an IPO now how can we use it later to get money?

Carmela asks:

How do people make money through IPO???

Ayana asks:

Some stock that came out not too long ago and is making a lot of money.

Stacey asks:

I would like to ask a detailed question. Let us consider a company releasing shares in the initial public offer (IPO). The people at the stock market buy the shares. The company gets the required money. The company put the collected money into its business. Meanwhile, the stock is traded in the share market. Sometimes the share price goes up sometimes goes down depending upon various market dependent and market independent parameters. My question is in what way the company is affected by the fluctutaion in its share prices? Because, the company neither gains any profit when its share prices are up nor loses when its share prices are down. Because, the company has collected the money already. So, the company, its owners and its business are not affected by the share price of that company. It is the poor investers who buy and sell the stock are affected. Am I right? If I am right, why dont we call this as a pure gambling?

Fay asks:

I missed the boat on big IPO’s like Amazon, Yahoo, Google and the likes. VISA is geared to go public sometime next year.
MC started at 40.30 and is now 215.46. Would it be good advise to put some money into it, long term. Since I am new to this - on line trading, is it as good as having a broker.
Thanks in advance for all advice.

Shera asks:

Even though they generated money and capital in the beginning, won’t they still have to pay it back in the end if the company closes down. So then the money won’t be theirs…

Vanita asks:

I’m not too sure of how VC really works. Let’s say I am a startup company and we get founded by VC. They invest in the company and get a share of it, I pay some annual fees, and if everything rolls alright we get to split the money in the end after an acquisition or IPO.

But what happens if the product fails? Will I own any invested money to the VC firm? How does it work?