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Going public |
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Going publicWhen a company decides to list its shares on a stock market it has to go through an elaborate process before its shares become quoted. The final act of listing is known as a flotation or 'going public'.The company publishes a prospectus describing its business, who its directors are, what its financial position is, and what profits it thinks it is going to make. The information it includes has to conform to strict guidelines so that potential investors are not misled.The prospectus announces the issue of new shares, sets an offer price for the shares, and invites subscriptions. In some cases, a company won't actually set a price for its shares, but will have an 'offer by tender' - effectively an auction in which investors bid for shares.In a flotation a company raises money by issuing new shares in what is known as the 'primary market'. Once the shares are listed, further trading in them occurs in the 'secondary market' - secondary in the sense that it is a second stage market between investors that doesn't involve the company itself.Going publicWhen a private company first offers shares to the public market and investors. See: IPO.Going public Similar MatchesPublicly traded assetsPublicly traded assetsAssets that can be traded in a public market, such as the stock market. The PublicThe PublicIndividual investors who trade single securities independently or invest in intermediaries such as mutual funds, as opposed to professional investors. Public housing authority bondPublic housing authority bondBonds of local public housing agencies that are secured by the federal government and whose proceeds are used to provide low-rent housing. Public warehousePublic warehouseStorage facility operated by an independent warehouse company on its own premises. Financial public relationsFinancial public relationsPublic relations division of a company charged with cultivating positive investor relations and proper disclosure information. Further SuggestionsPublic limited partnershipPublic Sector Net Cash Requirement Public Sector Borrowing Requirement Public procurement electronic public offering International Stock Exchange of the UK and the Republic of Ireland (ISE) public limited company (plc) Publicly held Public good Public Company Foreign public borrower go public initial public offering Public Utility Holding Company Act of 1935 Nonpublic information Public offering Public debt Public purpose bond public offering Public Securities Administration (PSA) Quasi public corporation Certified Public Accountant (CPA) Public securities offering Public offering price |
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