Laws that Govern Public Companies

Now that you understand more about the benefits as well as the costs and responsibilities of going public, are you ready for the race? The bottom line is: You can raise substantial capital by becoming a public company, but you must obey all the rules and keep investors happy.

When an investor reads your annual report, here’s what he/she wants to see:

• Very little long-term debt
• Plenty of cash to run the business
• Increasing sales revenue
• Rising profit margins
• A well-managed, profitable company

Click this link to go to the SEC website and read more about the laws that govern public companies: http://www.sec.gov/about/laws.shtml. To help you see the most important points of the law, we have prepared a note sheet on Legal Responsibilities of Public Companies. Click the link below to download this note sheet. If you are taking this course for a grade or for credit, you will turn in this assignment to your advisor or teacher.

Worksheet 9: Notes on Legal Responsibilities of Public Companies

Click the race car to continue

©2007 Business Professionals of America. All rights reserved
(copyrighted images used persuant to educational use provisions of US Copyright Act)