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CHAPTER 2 - Coggle Diagram

- - - - Initial Public Offerings (IPO)/ Public Offering of New issues
        
        PO is a first time company issues the securities to the public. Public offering of new issues.
        
        Company (capital raiser) will appoint investment bank as a middleman in issuing the new share.
        
        Capital raiser is a company needs to fund. Before issuing new securities, it must get approval from Securities Commission.
        : :
      - Private/Direct placement
        
        company will find the institution as their investor and they are willing to buy it. It means, the company sells the securities directly to investors.
        
        Does not involve the underwriters and purchased get the guarantee under purchaser.
        
        Investors provide the fund directly to the capital raisers.
      - Right offering
        
        company use rights offering where the new share offered to existing shareholders.
        
        The company will sell the share at lower price from the market price and it will create an opportunity to shareholders to get capital gain.
        
        Shareholders who do not wat to maintain the percentage of ownership can sell the share at secondary market.
      - Sale of shares to employees
        
        The company will sell the securities at discount price to their employees.
        
        Those who brought this kind of share are not allowed to sell at a specified time period
        
        Shares offered are normally fully underwritten. Prohibited from selling the shares within a specified time period.