Series 62

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.




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