|
|
Going public |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
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 MatchesPublic CompanyPublic CompanyA company that has held an initial public offering and whose initial public offeringinitial public offering on a stock exchange or in the over-the-counter market. Public companies are subject to periodic filing and other obligations under the federal securities laws. Publicly traded assetsPublicly traded assetsAssets that can be traded in a public market, such as the stock market. Public limited company (plc)Public limited company (plc)A company registered as a public company which has an unlimited number of shareholders, and can offer its shares to the public.Most UK companies are incorporated as limited companies. Some of them grow to the point where they want to expand their shareholder base, and raise capital by listing on the London Stock Exchange. To do that, they need to convert their status to that of a plc. Public limited partnershipPublic limited partnershipA limited partnership with an unlimited number of partners that is registered with the SEC and is available for public trading by broke../../finance-glossary/dealers. Public Sector Borrowing RequirementPublic Sector Borrowing RequirementSee 'Public Sector Net Cash Requirement (PSNCR)'. Further SuggestionsPublic offering pricePublic warehouse Public Securities Administration (PSA) The Public public offering Public debt Public Sector Net Cash Requirement Public procurement Financial public relations Public good International Stock Exchange of the UK and the Republic of Ireland (ISE) Quasi public corporation electronic public offering Public housing authority bond Public offering Foreign public borrower Public purpose bond Public securities offering go public initial public offering Publicly held Certified Public Accountant (CPA) Nonpublic information Public Utility Holding Company Act of 1935 |
|
|
|