What is a public offer?

The public offer is the sale of shares or shares of the company for the public. In general, both small and large corporations use stock sales as a method of increasing capital for expansion or investment. This shares can be issued in a private offer - a selected group of private individuals - or can be offered to the general public. If it is offered to the general public, it is usually offered in one of two types - ordinary stocks or preferred stocks. The buyers of the shares offered in public offers are often individual investors, companies and brokerage companies.

Before offering a shares issuing the company often acquires the subscriber services. The subscriber - usually an investment bank or brokerage company - determines the number of shares and the price of each shares to be offered for sale. Then they buy these shares from the issuing company and sell them to the public. Interested investors often buy shares from Amacléř at a predetermined public bid price.

The most common type of public offer Je Initial public offer or IPO. In short, IPO is the first time the company offers its shares to the public for sale. Smaller and younger corporations usually create IPOs to gain capital to spread.

In order to raise further funds, some companies issue more shares to the public in the subsequent offer, also known as a secondary public offer. Shares issued during the following offer can be sold at a lower price to affect larger sales. Unlike IPOs, shares sold in a secondary offer are usually held by current shareholders issuing a company. Cash generated by selling can be used to refinance debt, help issuing companies to diversify their shares or quickly create more capital to cause even faster expansion.

public offer can benefit companies in many ways. Exposure from the notification of the sale of AKCII can bring new investors or provide larger assets to lenders. It is also likely that publication will help the issuing corporation to maintain or hire top employees, as the influx of new capital can signal growth.

Unlike public offers, companies can acquire capital through private offers. These shares are not offered to the public in general; Rather, they are offered a small group of private individuals - usually less than 30 or 40 people. These potential investors may or may not work for society.