Google Public Offering Paper
Google is the most widely used internet search engine. This internet search engine generates revenue from advertising, office productivity, online mapping, video sharing and web based email. Based in Mountain View, Calif., there are approximately 17,000 employees worldwide. Privately started by two entrepreneurs in 1998, Google had the public initial offering in 2004. The net worth of Google in 2007 was 23 billion. (Reuters, 2005)
An investor from Sun Microsystems made the first initial investment of $100,000. A few months later capital venture firms, Kleiner Perkins Caufield & Byers and Sequoia Capital, invested more money into Google. The initial IPO launched August 2007 with shares offered at $85 dollars a share gave Google a market capitalization of 23 billion. The company is traded on American and European stock markets. (Google, 2007))
Corporations are legal entities and as such, assets can be held in the corporation. Corporations can be self-governing with abilities to sign contracts and at the same time courts can assign duties or obligations to the corporations as well.
U.S. corporations are required to register according to laws and regulations. Other common issues require licensing and ordinance compliances. When filing with U.S. Security and Exchange commission, financial information is required to be disclosed per Securities Act Section 5 and exchange regulations. Rule 701 allows compensation of stock options to employees. In 2005, Google failed to properly register this option and was investigated by SEC. (U.S. Securities and Exchange Commission [USSEC], 2005)
The Registration Process
It is general practice that securities must be registered when sold in the U.S. Published forms common f ...