The Use of IPO Proceeds
7 Pages Posted: 20 Jun 2016
Date Written: June 20, 2016
Abstract
This paper proves that the only use of the IPO proceeds is to distribute them back to the existing shareholders. Any other usage must be cheating and erode the rights of the existing shareholders. The need of money must be financed through equity or debt expansion. This paper also warns of the scandal from merging.
Keywords: Corporate Finance, IPO
JEL Classification: O16
Suggested Citation: Suggested Citation
Choi, Hak, The Use of IPO Proceeds (June 20, 2016). Available at SSRN: https://ssrn.com/abstract=2798012 or http://dx.doi.org/10.2139/ssrn.2798012
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