Running a Public Company From IPO to SEC Reporting

by Bragg, Steven M.

• ISBN13: 9780470446362
• ISBN10: 0470446366
• Edition: 1st
• Format: Hardcover
• Copyright: 2009-09-28
• Publisher: Wiley

Summary

Running a Public Company describe the concepts behind each securities law, and builds a compliance structure for it that itemizes specific policies, procedures, controls, forms and reports. Laws and regulations covered will include securities registration, mergers and acquisitions, initial public offerings, state blue sky laws, proxy statements, tender offers, insider reporting, and fair disclosure.

Author Biography

Steven M. Bragg, CPA, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young and an auditor at Deloitte & Touche. He received a master's degree in finance from Bentley College, an MBA from Babson College, and a bachelor's degree in economics from the University of Maine. He has been the two-time president of the Colorado Mountain Club, is an avid alpine skier and mountain biker, and is a certified master diver. Mr. Bragg resides in Centennial, Colorado. He is also the author of Accounting Best Practices and Accounting Policies and Procedures Manual, Fifth Edition (both published by Wiley).

Table of Contents

About the Author	p. xiii
Preface	p. xv
How to go Public	p. 1
The Initial Public Offering	p. 3
Introduction	p. 3
Reasons to Go Public	p. 3
Reasons Not to Go Public	p. 5
The Cost of an IPO	p. 7
Preparing for the IPO	p. 7
Finding an Underwriter	p. 10
Registering for and Completing the IPO	p. 14
Summary	p. 18
Acquiring a Public Shell Company	p. 19
Introduction	p. 19
Pros and Cons of Acquiring a Public Shell Company	p. 19
The Mechanics of a Shell Company	p. 21
Summary	p. 22
Listing on a Stock Exchange	p. 23
Introduction	p. 23
The Listing Process	p. 23
The American Stock Exchange	p. 24
The NASDAQ	p. 27
Overview	p. 27
The NASDAQ Capital Market	p. 27
The NASDAQ Global Market	p. 27
The New York Stock Exchange	p. 29
Comparing the Stock Exchanges	p. 31
Summary	p. 33
Dealing with Investors	p. 35
Investor Relations Overview	p. 37
Introduction	p. 37
Investor Relations Objectives and Goals	p. 38
Investor Relations Tools	p. 39
The Fact Sheet	p. 4l
The Press Release	p. 42
The Annual Report	p. 46
The Annual Meeting	p. 48
The Company Web Site	p. 49
The Road Show	p. 54
The Conference Call	p. 55
Float Management	p. 57
Summary	p. 59
The Investment Community	p. 6l
Introduction	p. 6l
The Analyst's Perspective	p. 6l
Finding the Right Analyst	p. 63
The Sell Side	p. 64
Analysts	p. 64
Brokers	p. 67
Investment Bankers	p. 69
Investor Relations Specialists	p. 70
The Buy Side	p. 70
Types of Investors	p. 70
Institutional Investors	p. 71
Individual Investors	p. 73
Investment Clubs	p. 75
Foreign Investors	p. 76
Presentations to Investors	p. 76
Summary	p. 77
Regulation FD (Fair Disclosure)	p. 79
Introduction	p. 79
Policies	p. 80
Procedures	p. 82
Controls	p. 83
Summary	p. 86
Stock Repurchases	p. 87
Introduction	p. 87
Impact on Earnings per Share	p. 87
Legal Ramifications	p. 88
SEC Reporting	p. 89
Adequate Disclosure and Repurchase Instructions	p. 90
Impact of Repurchases on Rule 13e-3	p. 91
Summary	p. 91
Dealing With The Securities and Exchange Commission	p. 93
Registration Statements	p. 95
Introduction	p. 95
Form S-1	p. 95
Form S-3	p. 98
Form S-8	p. 99
The Shelf Registration	p. 100
Declaring a Registration Statement Effective	p. 100
Controls	p. 101
Summary	p. 102
Regulation D (Sale of Unregistered Securities)	p. 103
Introduction	p. 103
Policies	p. 104
Procedures	p. 105
Controls	p. 109
Summary	p. 112
	p. 113
Introduction	p. 113
Procedures	p. 115
Controls	p. 115
Summary	p. 117
Rule 10b5-1 (Stock Trading Plans)	p. 119
Introduction	p. 119
Policies	p. 122
Summary	p. 123
Regulation A (Small Issue Exemption)	p. 125
Introduction	p. 125
Policies	p. 127
Procedures	p. 127
Controls	p. 129
Summary	p. 132
Fedwire Payments	p. 133
Introduction	p. 133
Summary	p. 135
Form 8-K	p. 137
Introduction	p. 137
Controls	p. 144
Summary	p. 145
Insider Securities Ownership and Trading	p. 147
Introduction	p. 147
SEC Filing Codes	p. 151
Short-Swing Profits	p. 153
Short Sales by Insiders	p. 154
Policies	p. 154
Controls	p. 154
Summary	p. 154
Proxy Solicitations	p. 157
Introduction	p. 157
Online Proxy Voting	p. 161
Policies	p. 164
Procedures	p. 165
Controls	p. 169
Summary	p. 170
Regulation M-A (Mergers and Acquisitions)	p. 171
Introduction	p. 171
Policies	p. 174
Procedures	p. 177
Controls	p. 179
Summary	p. 182
Private Securities Litigation Reform Act (Forward-Looking Statements)	p. 183
Introduction	p. 183
The Private Securities Litigation Reform Act	p. 184
Forward-Looking Statements	p. 185
Policies	p. 188
Procedures	p. 189
Controls	p. 190
Summary	p. 193
Sarbanes-Oxley Act	p. 195
Introduction	p. 195
The Public Company Accounting Oversight Board	p. 195
Auditor Independence	p. 197
Corporate Responsibility	p. 198
Enhanced Financial Disclosures	p. 201
Analyst Conflicts of Interest	p. 202
Other Significant Parts of the Act	p. 203
Summary	p. 204
Special Accounting Standards For A Public Company	p. 205
Interim Reporting	p. 207
Introduction	p. 207
Example of Interim Reporting of Various Expenses	p. 208
Second Example of Interim Reporting of Various Expenses	p. 209
Policies	p. 210
Procedures	p. 210
Controls	p. 211
Disclosures	p. 212
Summary	p. 213
Segment Reporting	p. 215
Introduction	p. 215
Policies
Procedures	p. 219
Controls	p. 220
Disclosures	p. 220
Summary	p. 222
Earnings per Share	p. 225
Introduction	p. 225
The Simple Capital Structure	p. 225
Example of EPS ComputationùSimple Capital Structure	p. 226
Preferred Stock Dividends Payable in Common Shares	p. 230
The Complex Capital Structure	p. 231
Example of the Impact of Contingent Stock Issuances on Earnings per Share	p. 232
Examples of EPS ComputationùComplex Capital Structure	p. 235
Participating Securities and the Two-Class Method	p. 240
ExampleùParticipating Convertible Preferred Stock	p. 241
ExampleùParticipating Convertible Debt Instrument	p. 242
ExampleùParticipating Warrants	p. 243
The Effect of Contracts That May Be Settled in Stock or Cash on DEPS	p. 244
Inclusions/Exclusions from Computation of DEPS	p. 245
The Effect of Contingently Convertible Instruments on DEPS	p. 245
ExampleùContingently Convertible Debt with a Market Price Trigger	p. 246
Effect on EPS of Redemption or Induced Conversion of Preferred Stock	p. 246
Earnings per Share Implications of Share-Based Employee Compensation	p. 247
Presentation of Earnings per Share	p. 248
Controls	p. 249
Summary	p. 250
Staff Accounting Bulletins	p. 251
Introduction	p. 251
Selected Staff Accounting Bulletins	p. 252
Summary	p. 255
Regulation G (Non-GAAP Information)	p. 257
Introduction	p. 257
Policies	p. 258
Procedures	p. 259
Controls	p. 261
Reporting Examples	p. 262
Summary	p. 264
Closing The Books of A Public Company	p. 267
Constructing and Filing the Quarterly 10-Q and Annual 10-K Reports	p. 269
Introduction	p. 269
Constructing the SEC Filing	p. 269
Quarterly Auditor Reviews and Audits	p. 276
Quarterly Legal Review	p. 279
Officer Certification	p. 279
Audit Committee Approval	p. 280
EDGARizing	p. 281
Summary	p. 283
Controls for Financial Reporting	p. 285
Introduction	p. 285
Controls for Financial Reporting	p. 285
Summary	p. 295
Going Private	p. 297
How to Take a Company Private	p. 299
Introduction	p. 299
The Going Private Transaction	p. 299
Rule 13e-3	p. 300
Filling Out Schedule 13E-3	p. 301
Form 15	p. 304
The 300 Shareholder Limit	p. 304
Summary	p. 305
Board Questionnaire	p. 307
Index	p. 311
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