Thursday, July 14, 2011

Can someone make an IPO (Initial Public Offering) and keep the money for himself?

To close a company, the assets are liquidated and distributed to the creditors of which the shareholders are last in line. You would just end up giving the money back in your scheme. Note that the IPO will be underwritten somehow so you're not getting something for nothing, you do have to put some assets on the line just to file for the IPO and investors will want to see some substance in what they are investing which is what they own when they invest. Keep in mind that the owners of the corporation are it's shareholders.

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