Series 62

By Jeff Van Blarcom AAA

Issuing Corporate Securities - Types Of Offerings

Initial Public Offering (IPO) / New Issue



An initial public offering is the first time that a company has sold its stock to the public. The issuing company receives the proceeds from the sale minus the underwriter’s compensation.



Subsequent Primary / Additional Issues



In a subsequent primary offering, the corporation is already publicly owned and the company is selling additional shares to raise new financing.



Primary Offering vs. Secondary Offering



In a primary offering, the issuing company receives the proceeds from the sale minus the underwriter’s compensation. In a secondary offering, a group of selling shareholders receives the proceeds from the sale minus the underwriter’s compensation. A combined offering has elements of both the primary offering and the secondary offering. Part of the proceeds goes to the company and part of the proceeds go to a group of selling shareholders.



Awarding The Issue

You May Also Like

Related Articles
  1. Professionals

    Becoming A Registered Investment Advisor

  2. Investing Basics

    Online Portfolio Management, DIY or ...

  3. Markets

    Pick Better Stocks By Consulting Form ...

  4. Insurance

    Municipal Bond Tips For The Series 7 ...

  5. Retirement

    6 Proven Tips For Series 6 Success

Trading Center