What is the price offered?

The price of offers is the value at which the shares will start trading in public markets. It is determined by investment bankers who lead a procedure known as subscription, except for lawyers and managers of the company that is published. The price of offers is based on a number of factors and investors' demand eventually determines where the shares will be traded.

The initial day of trading in the public stock market is known as its initial public offer (IPO), although for months and sometimes years of preparation. When the company decides on IPO, the first step is to submit documents for a list with a regulatory body supervising the financial markets in the region. In the US, for example, this body for securities and stock exchanges. In London it is the Office for Financial Services.

After paperwork, investment bankers, lawyers and company executives will be in the designation of the public bid price of shares. The factors that could consider this decision include where similar shares in STEThe sector is trading, the value of the company's assets and its debt. Investment banker fees are other components of the total value of the new offer. To illustrate the expected initial offer of the new edition price, a commercial range is set up.

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subscription team usually embarks on a road show that is carried out to measure investors' interest in the company and raise awareness of the upcoming IPO. It is a chance for the company's managers to communicate their message about the company, its business model and growth plans. The target audience in the road show includes large investors, such as financial institutions, because they are companies that will potentially have the largest investment in shares. If the road show is successful, the offer could land at the peak of a predetermined range. A bland road show could result in a lower price list or IPO delay.

after shares ofAlthough trading at the offer price, investors have determined its value since. Shares often have their best trading day when on the day of offer, when investors flock to a new opportunity. Whether the shares trade over or under the public offer of the price after it depends on the supply of shares and investors' demand.