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Name various methods for stock issue?

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Question ajoutée par ASHUTOSH BHARDWAJ
Date de publication: 2016/06/27
Hafsa Qamar
par Hafsa Qamar , Assistant Teacher , NFC-IE&FR.Faisalabad.PAKISTAN

1) Public Issue - This involves a corporation making an invitation to the general public to subscribe or purchase its shares

Offers for sale - This method involves a corporation selling a new issue of share to an issuing house, and the issuing house will bear the risks of selling shares to other investors.

Private placings - This method involves an issue of new shares to financial institutions and large private clients rather than making an invitation to the general public to subscribe to shares.4) Bonus issues - A listed company may capitalize part of its reserves by making a bonus issue to the existing shareholders, and no cash will be paid to such issues.

5) Rights issue - A corporation may make a rights issue to its ordinary shareholders. Existing shareholders will be given the rights to buy a new share at a price lower than that listed in the stock exchange.

Ahmed Yehya EL-Rayess
par Ahmed Yehya EL-Rayess , Freelance Financial Consultant , Compass Business Incubator

Public issue, offers for sale, private placing, bonus issue and rights issue

 

Sajid Azfar
par Sajid Azfar , financial controller , Waves Singer Pakistan Limited

First In First Out

Last In First Out

Weighted Average

Rizwana Lalsangi
par Rizwana Lalsangi , Senior Operations specialist , Rhodium International Trading DMCC

There are basically 2 types of stock issuance. Common Stock and preferred stock. Common stock comes with ownership in the co as investor in equal proportion to its issuance i.e. 1:11 stock =1 voting right. Whereas preferred stock may or may not come with voting rights or may have uneven voting rights. Preferred stocks is normally issued with fixed dividents, they are paid dividents at a fixed rate. 

Stocks issuance can be public or private. Listed companies can invite for public issuance through exhange housed. Or companies may decide to call the issuance from a private group. 

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