Once Sal's hypothetical company has gone through two rounds of seed investor financing, competition drives it to raise significantly more cash. Learners investigate the initial public offer process, starting with a visit to an investment bank. He explains the bank's role and motivations and outlines how a syndicate operates. Scholars differentiate private equity sales with this new IPO and see a clear demonstration of the mechanics behind raising money this way. Finally, there is a brief comparison between trading on a public stock exchange and investing in an IPO.