Flotation - When a company’s shares are admitted to trading on the Exchange.
The process of changing a private company into a public company by issuing shares and soliciting the public to purchase them.
When a company decides to list its shares on a stock market it has to go through an elaborate process before its shares become quoted. The final act of listing is known as a flotation.The company publishes a prospectus describing its business, who its directors are, what its financial position is, and what profits it thinks it is going to make. The information it includes has to conform to strict guidelines so that potential investors are not misled.The prospectus announces the issue of new shares, sets an offer price for the shares, and invites subscriptions. In some cases, a company won"t actually set a price for its shares, but will have an "offer by tender" - effectively an auction in which investors bid for shares.In a flotation a company raises money by issuing new shares in what is known as the "primary market". Once the shares are listed, further trading in them occurs in the "secondary market" - secondary in the sense that it is a second stage market between investors that doesn"t involve the company itself.
Flotation : when a company’s shares are admitted to trading on the exchange.
the process of changing a private company into a public company by issuing shares and soliciting the public to purchase them.
when a company decides to list its shares on a stock market it has to go through an elaborate process before its shares become quoted. the final act of listing is known as a flotation.the company publishes a prospectus describing its business, who its directors are, what its financial position is, and what profits it thinks it is going to make. the information it includes has to conform to strict guidelines so that potential investors are not misled.the prospectus announces the issue of new shares, sets an offer price for the shares, and invites subscriptions. in some cases, a company won"t actually set a price for its shares, but will have an "offer by tender" - effectively an auction in which investors bid for shares.in a flotation a company raises money by issuing new shares in what is known as the "primary market". once the shares are listed, further trading in them occurs in the "secondary market" - secondary in the sense that it is a second stage market between investors that doesn"t involve the company itself.
Flotation