The Use of IPO Proceeds

7 Pages Posted: 20 Jun 2016

See all articles by Hak Choi

Hak Choi

Chienkuo Technology University - Department of International Business; Chung-Hua Institution for Economic Research

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

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

Hak Choi (Contact Author)

Chienkuo Technology University - Department of International Business ( email )

No.1, Chiehsou N. Road
Changhua City, 500
Taiwan
+886 91 901-4618 (Phone)

HOME PAGE: http://euntold.wordpress.com

Chung-Hua Institution for Economic Research ( email )

75, Changhsin St.
Taipei
Taiwan

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
155
Abstract Views
822
Rank
343,436
PlumX Metrics