How a company starts selling stocks

Companies sell stock to raise additional FUNDS
for acquiring assets and expanding their businesses.

1. Company sell STOCKS TO THE PUBLIC through Initial Public Offering (IPO)
   It turns private company to a PUBLIC COMPANY

2. Company hires investment bank to underwrite the IPO, (Optional but better)
   Meaning it'll guarantee to buy the shares at certain price even if company can't sell all shares to investors

3. Investment Bank divides stocks into shares
   Shares are sold to brokers

4. Brokers sell shares to investors (normal people)

Created: 2023-09-25 Tags: #literature Link: Stocks