Farm To Table Case Study

850 Words4 Pages
A growing corporation must take a look at itself to determine where it is going. The board of directors is charged with a very serious task requiring a great deal of insight into the benefits and challenges that will be faced by the corporation. At this time, Farm to Table is a closely held corporation. I will provide you with the legal information that will allow you to make an informed decision that is best for achieving your goals. You are posed with various options regarding the future of Farm to Table: moving towards an initial public offering, merger & accusation, or remaining a closely held corporation. Within each of these options we must look at corporate identity, governance, and concerns with the financials of the corporation. Initial Public Offering…show more content…
You must have something to trade . . . Stock. Stock is a form of a security which is an investment that one makes where the investor is completely dependent on the efforts of another person. There are many benefits to going forward with an IPO. Transitioning from a closely held corporation to a publicly traded corporation can allow the early investors to capitalize financially on their investment. An IPO may also inject much needed capital into the corporation. CB at 800. The sale of securities is regulated by the Securities Exchange Commission (SEC). The SEC created specific laws with the 1933 Act in order to protect investors from fraud, while the 1934 Act provided a private cause of action. CB at 729. For a corporation to sell its stock shares publicly, it must be registered or have an exemption from registration. In registering, the corporation must file a statement providing corporate details concerning its financials and much more information that potential investors would want to know.. CB at
Open Document