Public Offering

AAA

DEFINITION of 'Public Offering'

The sale of equity shares or other financial instruments by an organization to the public in order to raise funds for business expansion and investment. Public offerings of corporate securities in the U.S. must be registered with and approved by the SEC and are normally conducted by an investment underwriter.

INVESTOPEDIA EXPLAINS 'Public Offering'

Generally, any sale of securities to more than 35 people is deemed to be a public offering, and thus requires the filing of registration statements with the appropriate regulatory authorities. The offering price is predetermined and established by the issuing company and the investment bankers handling the transaction. The term public offering is equally applicable to a company's initial public offering, as well as subsequent offerings.

RELATED TERMS
  1. SEC MEF Filings

    SEC filings that concern registration of up to an additional ...
  2. Underwriting

    1. The process by which investment bankers raise investment capital ...
  3. Public Offering Price - POP

    The price at which new issues of stock are offered to the public ...
  4. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  5. Secondary Offering

    1. The issuance of new stock for public sale from a company that ...
  6. Subsequent Offering

    An offering of additional shares after the issuing company has ...
Related Articles
  1. Interpreting A Company's IPO Prospectus ...
    Fundamental Analysis

    Interpreting A Company's IPO Prospectus ...

  2. What does 'going public' mean?
    Entrepreneurship

    What does 'going public' mean?

  3. IPO Basics Tutorial
    Retirement

    IPO Basics Tutorial

  4. How Wells Fargo Became The Biggest Bank ...
    Stock Analysis

    How Wells Fargo Became The Biggest Bank ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center