Public Offering

Posted in Finance, Accounting and Economics Terms, Total Reads: 858
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Definition: Public Offering

When a company offers to sell its shares or any other financial instrument to the public in order to raise funds it is known as public offering.

When the company is offering its shares for the first time to the public it is known as Initial Public offering. The issue of new shares takes place in the primary market.

In both cases the company has to prepare Prospectus which is a disclosure of information to public.

 

 

 

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