Initial Public Offerings: Good and Bad News

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What happens when a private company decides to go public?

Initial Public Offerings: Good and Bad News

If you're researching a private company that is in the process of going public, there's good news and bad news. The good news is that once a company is public, it needs to follow SEC rules and begin reporting its financial information, which will be publicly available in the SEC's EDGAR database. Also, companies in the process of going public are required to release a business prospectus, which can contain valuable financial information that otherwise might not be released. The bad news is that while the company is in the process of going public, it has to go through a "quiet period" where it is not allowed to release any information at all. So if you want more private company research than is available in the prospectus, you'll need to either purchase your information from a private company research specialist, resort to some creative research methods yourself, or wait for the IPO.

   

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