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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 MatchesPublic purpose bondPublic purpose bondA specific type of municipal bond used to finance public projects such as roads or government buildings. Interest on municipal bonds is federal income tax-free. Publicly traded assetsPublicly traded assetsAssets that can be traded in a public market, such as the stock market. Nonpublic informationNonpublic informationInformation about a company that is not known by the general public, which will have a definite impact on the stock price when released. See: Insider trading. Public Sector Borrowing RequirementPublic Sector Borrowing RequirementSee 'Public Sector Net Cash Requirement (PSNCR)'. Public offering pricePublic offering priceThe price of a new issue of issue at the time that the issue is offered to the public. Further SuggestionsPublic procurementPublic Securities Administration (PSA) Public good Public limited partnership Financial public relations Quasi public corporation International Stock Exchange of the UK and the Republic of Ireland (ISE) Publicly held public limited company (plc) Foreign public borrower Public offering Public debt Public securities offering Certified Public Accountant (CPA) Public Company go public Public Utility Holding Company Act of 1935 electronic public offering Public warehouse public offering Public housing authority bond initial public offering Public Sector Net Cash Requirement The Public |
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