Public Offering

You may have heard the term public offering and wondered what it means.

This is basically when a stock comes to market, and shares are offered in the company to members of the public.

There are various ways of doing this, either at a fixed price or even an auction of stock which some companies use when they are confident that there will be strong demand for stock in their company.

These offerings are underwritten in most cases by large institutions; also in order to get to the stage of being able to make a public offering there will have been several stages where it is checked the company meets the various regulatory requirements of companies that will be listed in this way.

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