Now Your turn A: Mr. Smith, though your company has grown fast few years, the market is changing the rapidly So you need to think the long term and take proactive measures; otherwise, you'll find it behind B: You're quite right, but can you be more specific about what we must do? A: Don' t you think your company is a bit short of funds to expand production at the momen B: That's right A: You simply cant afford to upgrade your facilities without large external investments B: Perhaps I have to borrow money from the bank A: It wont lend you so much money B: I havent tried it A: Even if you got a loan, the interest rate for large sum would be more than you can afford. I'm convinced, the only way to gather funds you need is to go to public B: What should i do then? A: Let me explain the requirements for an IPO B: I'm all ears. I want to have a thorough understanding of what this entails before I make further A: The important point is that you have to demonstrate that you are financially qualified to be launched on the stock market. You must show you have a capital of 50 million yuan B: Our company does have that amount of money. Are there other requirements? A: You have to prove that the company has been making a profit in the past three years. It's also essential that there are no false financial reports B: Ok, no problem. I'lI try to go through the Registration procedure to get our company listed modeL 3 Nothing is certain n the stock market Susan: Hey, Chris, have you read the paper today? Chris: No. why? What's up? Susan: The store market has dropped Chris: Oh, no! Not again! How many points did it lose this time? S Chris: Let's see... that's a drop of three percent. Well, there goes the money I was going to use to buy a new car Susan: Before you get upset, I think you should look at the stock listings for today Chris: what for? Susan: Well, some stocks actually gained, especially telecom stocks Chris: Let me see that paper. You're right! My stock went up five percent overnight! Thats great Susan: For now, anyway. It may plunge tomorrow.Now Your Turn A: Mr. Smith, though your company has grown fast few years, the market is changing the rapidly. So you need to think the long term and take proactive measures; otherwise, you’ll find it behind the competition. B: You’re quite right, but can you be more specific about what we must do? A: Don’t you think your company is a bit short of funds to expand production at the moment. B: That’s right. A: You simply can’t afford to upgrade your facilities without large external investments. B: Perhaps I have to borrow money from the bank. A: It won’t lend you so much money. B: I haven’t tried it. A: Even if you got a loan, the interest rate for large sum would be more than you can afford. I’m convinced, the only way to gather funds you need is to go to public. B: What should I do then? A: Let me explain the requirements for an IPO. B: I’m all ears. I want to have a thorough understanding of what this entails before I make further decisions. A: The important point is that you have to demonstrate that you are financially qualified to be launched on the stock market. You must show you have a capital of 50 million yuan. B: Our company does have that amount of money. Are there other requirements? A: You have to prove that the company has been making a profit in the past three years. It’s also essential that there are no false financial reports. B: Ok, no problem. I’ll try to go through the Registration procedure to get our company listed. MODEL 3 Nothing is certain n the stock market Susan: Hey, Chris, have you read the paper today? Chris: No. why? What’s up? Susan: The store market has dropped again. Chris: Oh, no! Not again! How many points did it lose this time? Susan: One hundred. Chris: Let’s see…that’s a drop of three percent. Well, there goes the money I was going to use to buy a new car. Susan: Before you get upset, I think you should look at the stock listings for today. Chris: What for? Susan: Well, some stocks actually gained, especially telecom stocks. Chris: Let me see that paper. You’re right! My stock went up five percent overnight! That’s great! Susan: For now, anyway. It may plunge tomorrow