Please help me understand how IPO works. E.g. I have a company (I am the only owner) which I think worth $1m. I decide I wanna go public and do IPO (the actual number doesn't matter, $1m is just for anchor). Does whole $1m become available as company stocks? Who decides what is the initial price per share? Who gets the money from selling all the stocks? Please don't throw rocks if I ask dumb questions :)
The last question is actually the most important. If I go public, can I cash $1m and stop being an owner of the company altogether? Or is it rather $1m of cash available for the company to use in its operations?
I understand there can be different scenarios, but please try to explain only the most common cases.
Submitted April 14, 2019 at 02:04AM by dnknitro http://bit.ly/2UBOwru
