Passage the founders of business became billionaires. Nevertheless, not

 Passage of listing is a prerequisite for
investors in the public offering or placement of securities. Both placement and
circulation of securities can be carried out: 1) in organized tenders held on a
regular basis in accordance with established rules, providing for the procedure
for allowing individuals to participate in tenders for the conclusion of sales
contracts (including exchange trades); 2) outside the organized auction. The
main role of the Exchange is to pricing the financial market on the basis of
concentration of liquidity and clearly established rules of trade. The
advantage of organized trades is a significant expansion of the issuer’s
investment opportunities. In international practice, the use of exchange
services is a universal way of access to a wide range of investors, including
institutional investors who have the right to invest in financial instruments
that meet strictly defined requirements.

In the network, we
can often find stories about how companies entered the exchange and conducted
an IPO, after which the founders of business became billionaires. Nevertheless,
not everyone knows how much this process of moving the company from private to
public. When a company wants to offer its shares to the general public, it
conducts an IPO (initial public offering – IPO). Accordingly, the status of the
organization varies – instead of private, it becomes public (anyone can become
a shareholder). Private companies may have shareholders, but there are not so
many, and such companies face the requirements of regulatory bodies that are
different from the requirements imposed on the public. The process of preparing
an initial IPO public offering) takes from several months to a year and
requires significant funds of the company. A company that has gathered on a
stock exchange, hires an investment bank (or several banks) that will deal with
the process of organizing an IPO. Theoretically, it is possible to organize the
sale of own shares and independently, but in practice, so no one acts. Banks
that organize an IPO are called underwriters. When the bank is hired,
negotiations are held between their representatives and the company’s
management, during which the price of the proposed shares, their type and the
total amount raised (for example, Goldman Sachs or Morgan Stanley). After
signing the agreement between the company and the underwriter, the latter
submits an investment memorandum to the regulatory body of a particular country.
In the US it is the Securities Commission (SEC). This document contains of
detailed information about the proposal and the company: financial reports,
management biographies, lists the existing legal problems of the organization,
the purpose of raising funds and discloses a list of current shareholders of
the company. The regulator then checks the information provided and, if
necessary, requests additional data

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