Tecnologo

ESSENTIALS

of Corporate and Capital Formation

ESSENTIALS SERIES
The Essentials Series was created for busy business advisory and corporate professionals. The books in this series were designed so that these busy professionals can quickly acquire knowledge and skills in core business areas. Each book provides need-to-have fundamentals for those professionals who must:  Get up to speedquickly, because they have been promoted to a new position or have broadened their responsibility scope  Manage a new functional area  Brush up on new developments in their area of responsibility  Add more value to their company or clients Other books in this series include: Essentials of Accounts Payable, Mary S. Schaeffer Essentials of Balanced Scorecard, Mohan Nair Essentials of BusinessEthics, Denis Collins Essentials of Business Process Outsourcing, Thomas N. Duening and Rick L. Click Essentials of Capacity Management, Reginald Tomas Yu-Lee Essentials of Cash Flow, H.A. Schaeffer, Jr. Essentials of Corporate Fraud, Tracy L. Coenen Essentials of Corporate Governance, Sanjay Anand Essentials of Corporate Performance Measurement, George T. Friedlob, Lydia L.F. Schleifer, and Franklin J.Plewa, Jr. Essentials of Cost Management, Joe and Catherine Stenzel Essentials of Credit, Collections, and Accounts Receivable, Mary S. Schaeffer Essentials of CRM: A Guide to Customer Relationship Management, Bryan Bergeron Essentials of Enterprise Compliance, Susan D. Conway and Mara E. Conway Essentials of Financial Analysis, George T. Friedlob and Lydia L. F. Schleifer Essentials of FinancialRisk Management, Karen A. Horcher Essentials of Foreign Exchange Trading, James Chen Essentials of Licensing Intellectual Property, Paul J. Lerner and Alexander I. Poltorak Essentials of Knowledge Management, Bryan Bergeron Essentials of Managing Corporate Cash, Michele Allman-Ward and James Sagner Essentials of Managing Treasury, Karen A. Horcher Essentials of Patents, Andy Gibbs and BobDeMatteis Essentials of Payroll Management and Accounting, Steven M. Bragg Essentials of Sarbanes-Oxley, Sanjay Anand Essentials of Shared Services, Bryan Bergeron Essentials of Supply Chain Management, Michael Hugos Essentials of Trademarks and Unfair Competition, Dana Shilling Essentials of XBRL, Bryan Bergeron For more information on any of the above titles, please visit www.wiley.com.

ESSENTIALSDavid H. Fater

of Corporate and Capital Formation

John Wiley & Sons, Inc.

Copyright # 2010 by John Wiley & Sons, Inc. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical,photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4470, or on the web atwww.copyright.com. Requests to the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at www.wiley.com/go/ permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations orwarranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional...