Different professions can benefit from an initial public offering (IPO), including corporate executives, investment bankers, lawyers, and brokers. The decision to go public is made by a company’s management team and board of directors. Investment bankers lead the underwriting process, brokers represent investors, and lawyers guide participants through regulatory documentation and protect the company from liabilities.
The advent of an initial public offering (IPO) can create opportunities in many professions. Different IPO roles can include being a corporate executive such as a chief executive officer (CEO) or a chief financial officer (CFO) who decides to take the company public in the first place. Investment banking is another arena where IPO professionals are plentiful. Lawyers are also involved in the IPO process, as there are legal and regulatory hurdles to overcome when issuing shares on public markets. Brokers can also participate in the new offering process and as a result, IPO jobs can be found at brokerages.
A privately held company’s key management team, plus a board of directors, make the decision to go public and subsequently represent the IPO proceedings. Obtaining a higher management position can include gaining a successful track record at a company as an employee and rising through the ranks to the top position. An entrepreneur can also launch a new business and assume the role of CEO. Board members are respected members of the corporate community who join the governing body of another company to influence and vote on important issues of that company, such as going public in an initial public offering.
Investment bankers are responsible for the underwriting process for an IPO. These IPO jobs require high education and training and math proficiency as well as relationship building skills. A banker’s role in the IPO process is to lead the company’s executives through the new issuance process. A banker is responsible for pricing the new stock issue based on investor demand as well as the timing of the deal. It is the underwriter’s role to purchase a company’s shares before the shares are issued to the public and then reverse them and sell them at a profit.
Brokers are liaisons between investors and a new issue and, as a result, represent a type of IPO work. Brokers typically reserve shares of a new issue for the largest institutional clients who invest the most money through that brokerage. Financial certifications are required to participate in the markets as a stockbroker.
Lawyers are also involved in the process of going public on the stock exchange. Regulatory documentation must be submitted in a region to make a company eligible for business, and there are lawyers who specialize in guiding participants through this framework. Large amounts of money are raised in the capital markets through the IPO process, and a lawyer’s role is to advise the participants of the deal and protect the company from inheriting any liabilities in the process.
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