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The stock exchange stipulates the absolute value of the minimum free circulation

Posted: Wed Jan 22, 2025 6:57 am
by mstakh.i.mo.mi
Through this process, which is commonly referred to as floating or listing, private holding companies are transformed into listed companies. The first public offering can be used to raise new equity for the company, monetize the investment of private shareholders such as company founders or private equity investors, and realize easy transactions of existing shares or future financing through public transactions. After the first public offering, stocks are freely traded in the open market, the so-called free circulation.


(. The total value is determined by the stock price multiplied by the number of stocks sold to the public ) and the proportion of total share capital ( is the number of stocks sold to the public ). The public divided by the total engineer database number of shares issued ). Although the first public offering provides many benefits, it also involves a lot of costs, mainly process-related costs, such as bank fees and legal fees, and the continuous requirement to disclose important information ( sometimes sensitive information ).


The detailed information of the proposed issuance is disclosed to potential buyers in the form of lengthy documents called the Recruitment Instructions. Most companies conduct their first public offering with the assistance of investment bank companies as underwriters. Underwriters provide a variety of services, including helping to correctly assess the value of stocks ( stock price ) and establishing an open stock market ( first sale ).