The decision of AVG management to accumulate funds by selling shares was certainly a difficult one (“AVG Technologies Announces”). What is even more difficult, however, is the choice between the traditional initial public offerings and an online auction. Despite the fact that there are many risks related to an online-based auction, it seems that choosing it over the traditional IPO process would be the best option for AVG. Who the expected investors are in an IPO depends greatly on the type of the process. Choosing the traditional one would entail investments from financially powerful companies. On the other hand, an online auction would attract and make it possible for the smaller investors to take part in the auction. There are, basically, two lessons that can be drawn from the IPOs of Google and Morningstar. The first one is that they can ensure much higher initial price of shares since there is the possibility of including individual buyers (Edmonston 2009). Secondly, there is much risk related to the potential overpricing and underpricing of the shares which in the case of Google did not bring much loss to the buyers (Carter 2005). The main advantage of traditional IPO process is the fact that risks are reduced to minimum because it is conducted by an investment banking organization which tries to make the price of the shares as close to its real value as possible. On the other hand, auctions offer the possibility of involving smaller buyers which can earn more capital for the company and make the process much more democratic (Weinberg 2004). Conducted without an extensive market research done by some investment banking organization, auctions involve by far less expense than traditional IPO. Moreover, the additional costs such as taxes and fees are much lower in the case of auctions (“Traditional IPOs vs Auction”). The main risk related to traditional IPOs is the so-called problem of winner’s curse which is a tendency of those who win the auction to give too high bids. When that happens the investor is at loss for overpaying and in the long run the company experiences a fall in the share value as the market adjusts it. As for online auctions, the main risk is the potential settling of the price of shares at a level that is too low or too high since both outcomes can be devastating for the company (“Why Do IPO Auctions Fail?”). In conclusion, it seems that in the particular case of AVG, given the type of business in which it is engaged, an online auction would be the best solution. This view is supported by the fact that auctions cost less are more democratic in nature and can ensure a lot of initial capital which can, if used intelligently, help in strengthening the company. Before going public every firm should pass through the following steps. First off, it should be carefully considered whether the company would benefit from such act. Secondly, professional advisors should be involved in the procedure and their aim would be to help in choosing the type of procedure as well. Thirdly, a thorough organization of records and books should be carried out. Fourthly, an investment banking firm should be carefully chosen because they have great influence on the outcome of an