What are the positive and negative risk associated with IPO’s and mergers?
Adell asks:
What are the advantages and disadvantages associated with both Initial Public Offerings, and/or Mergers
What are the advantages and disadvantages associated with both Initial Public Offerings, and/or Mergers
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If you are an investor in a Private company that is going public with an IPO there is the advantage of selling your stock going up and there is the disavvantage of your stock going down. If you are a private company you don’t have a million investor wondering about your finances and about your accounting practices.
If you are an investor in a company merging with another one, there is a very good chance you end up making a lot of mnoney because after merger usually thousands of employees get fired and you save millions in payroll and many other benefits. Of course mergers can go wrong and you end up losing money.
If you question is about the positive or negative risk to the consumer or to the employees in those companies the answer is entirely diferent.