Discuss some of the risks involved in the public offering and how the securities laws deal with them.

There are numerous risks associated with a public offering which can be divided into legal and financial categories. Legally, there is the potential for fraud or misrepresentation of facts due to lack of oversight in this process as well as the risk of insider trading if company executives attempt to benefit from knowledge not available to the general public. Financially, investments may fail to generate returns or lose value depending on market conditions.

In order to minimize these risks applicable securities laws have been put in place such as Sarbanes-Oxley Act (SOX) which sets limits on certain activities like insider trading while also requiring disclosure of certain information about a company e.g financial reports etc. This helps protect investors by providing them with access to accurate info regarding a firm’s performance/stability prior to investing their funds.

Overall, while no system is foolproof there are several measures in place designed to reduce legal and financial risks involved when going public. It is important that all parties involved adhere strictly to these regulations in order ensure the safety of investors and promote honest dealings within this sector.