Initial Public Offerings

As a result of increased competition organizations are devising strategies of earning more capital to enable them expand and thus attract and serve bigger markets. One of the most commonly used and effective strategy is the Initial Public Offering (IPO). It involves the process of an organization issuing a certain percentage of its shares to the public with the main goal of raising capital to expand or become a publicly traded entity (Clinton, 2011). So as to fully understand IPO and how it works this article will briefly discuss the Starbucks Co. (SBUX) IPO.