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Shelf offering |
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Shelf offeringOffering of registered securities covered by a prospectus whose distribution is not underwritten on a firm commitment basis. The shares may be sold in one block or in small amounts from time to time in agency or principal transactions. See: Rule 415.Shelf offering Similar MatchesElectronic public offeringElectronic public offeringAn initial public offering, or new issue of shares, in which the process of applying for shares is handled electronically (via websites).See 'initial public offering'. Rights offeringRights offeringSee 'rights issue'. Rights OfferingRights OfferingA popular means of raising capital by offering shareholders the opportunity to buy additional shares of the same stock at a price below the current market value. Secondary distribution or offeringSecondary distribution or offeringPublic sale of previously issued securities held by large investors, usually corporations or institutions, as distinguished from a primary distribution, where the seller is the issuing corporation. The sale is handled off the NYSE, by a securities firm or a group of firms, and the shares are usually offered at a fixed price related to the current market price of the stock. Initial public offeringInitial public offeringThe first offering of a company's shares to the public known in the UK as a flotation. IPO was originally an American term but is increasingly being used across all world markets The shares offered may be existing ones held privately, or the company may issue new shares to offer to the public.There can be lots of reasons why companies offer shares to the public:the directors want to raise new capital for the companythe directors want to widen the shareholder base of the companythe shareholders want to have a liquid market in which to trade their sharesthe directors want to be able to use 'paper' to make acquisitionsthe directors want the publicity that a public listing bringsIn recent years there has been a tendency for companies to list on the market by a private placing of shares to institutions rather than public offerings. This is partly because the costs of a placing are far lower than an offer for sale, and partly it is because in 1996 the Stock Exchange scrapped its rule requiring that new issues worth more than £50m should offer a proportion to the public.Whatever the reason, it rankles that members of the public are so often denied the chance to 'get in on the ground floor' while institutions clean up. The internet may reverse the trend, however. There have already been several online flotations in the USA and Europe in which private investors get full participation rights. These are sometimes referred to as EPOs (Electronic Public Offerings).One of the advantages of buying shares in IPOs is that they do not attract Stamp Duty (0.5% tax normally paid on share purchases) and since you can buy direct from the issuing company you can avoid broker's commission. Further SuggestionsRights offeringOffering memorandum Targeted registered offerings Dual syndicate equity offering Offerings Registered secondary offering Public securities offering Offering statement Secondary Offering Intrastate offering Underwritten offering Public offering Offering date Blank check offering Public offering price Offering scale Reoffering yield public offering Split offering Competitive offering |
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