Is it possible to start a new company by issuing IPO's??

Question

Is it possible to start a new company by issuing IPO's alone without any investment???

If it is tel me the procedure

Answer 1

Yes.  Come up with a name like Nano-Bio Research.  Confince a bunch of phd and med doctors to sit on the board of directors. Easy to do.  Offer them stock options in the new company.  Approach one of the Wall Street firms to float the stock and you are in business.  Oh,one thing I forgot to tell you.  IPOs are not too popular in bear markets.  You have to wait until the bull market returns.

Answer 2

NO

To issue stock you will have to register with the SEC, and in doing so you must produce a prospectus which must have legal opinion attached (requires a lawyer or someone who knows underwritings), a financial statement (which requires an accounting firm)

You can't get broker/dealers to underwrite the stock without giving up something (either money or ownership)

Most broker/dealers will not underwrite an issue unless it has decent financials and a strong business plan

You cannot get stock promoters to do anything unless you give them ownership

Answer 3

yes possible

Answer 4

short answer is no.  tba

Answer 5

No, an IPO requires an estimated 1200 hours of attorney time and it isn't standard attorneys but securities attorneys.  So you need $350x1200 of your own money just for the attorney's fees.  The CPA fees will be cheap because you have nothing, maybe $50,000 and you will need an underwriter to set a price based on the value of what you expect to be doing given market prices for that level of risk.

So you need a very large amount of money to even consider one.

Answer 6

Well you'll have to pay a bunch of money to incorporate yourself and issue shares and that's not cheap (lawyer fees, government fees, stock exchange fees, etc.). Corporations have a lot of responsibilities to uphold like auditing and internal controls so it's very expensive. And then if you have no revenues or cash flows then nobody will be able to value your firm so your shares won't trade for anything really. You should be in business for at least a few years with a good future outlook if you want to issue an IPO. What about private shareholders? Do you have any rich friends that would want to invest in your idea(s)?