Google Flotation Report

Report on Google: What has happened since 2004 when they were floating?

What happened in 2004?

By 2004, Google had developed a range of products to strengthen its competitive position; its product portfolio was broadened in order to generate further revenue.

Under a corporate American law, once a company reaches a certain size they are required to publish its detailed financial information to the public. This is what Google was required to do. Flotation is the process of offering a company’s shares for sale on the market for the first time. Flotation enabled Google to raise extra cash that can be invested in R&D, designed to generate further technological innovation. By being listed on the stock market, the company had the opportunity for raising more capital.

It was stated under the Sarbanes-Oxley law that Google was required to verify that their accounts were correct in order to ensure that there was no frauds taking place due to recent corporate scandals. First, Google needed to get a “clean bill of health” from auditors in order to join the stock market and before it could file a stock registration document with the Securities and Exchange Commission (SEC).

Google Today

Now, in 2013, Google’s figures on the NASDAQ stock market are 801.42-7.68‎ (-0.95 %‎), compared to its figure of $1.7 billion in 2004 as a result of flotation.

The firm has successfully managed to maintain a high profile within its internet-based market. The reason Google has survived and maintained long-term performance is due to its ability to maintain its successful culture and continuous innovation. In addition, they are able to manage intense competition in the internet world.

Why is Google so successful?

Google Inc. is the No.1 search engine in the world due to its innovations in search technology. However, Google’s high revenues were due to placing advertisements next to search results on the internet. Today, advertising accounts for 99& of the revenue of a firm whose...