What is a public offering?

A public offering is a transaction in which a corporation’s stock, bonds, or other securities are sold to investors. In Florida, when a company decides to offer its securities to the public, it must register them with the Department of Financial Regulation. This registration process is also known as the “registration statement” and is done to provide investors with accurate information about the business and its offerings. Once the registration statement is completed, the public offering can begin. During a public offering, a company will make its securities available to the public by placing them on the National Association of Securities Dealers Automated Quotations (NASDAQ) or other public exchanges. The company will then issue a prospectus, which is a document designed to inform potential investors of important information about the company and the securities being offered. Typically, during a public offering, a company will want to attract as many investors as possible. To do this, the company will offer the securities at a discounted price, providing investors with a good deal. After the public offering has closed, the company will pay out the money that it received from the sale of the securities. At this point, the proceeds of the public offering are available to the company, and investors have gained a stake in the company’s success.

Related FAQs

What is the process for corporate dissolution?
What is a corporate code of ethics?
What is the role of in-house counsel?
How does corporate law differ from state law?
What is the process for corporate liquidation?
What is a shareholder class action?
What is the role of corporate finance?
What is a tender offer?
What is the role of corporate compliance officers?
What is the process for corporate proxy voting?

Related Blog Posts

What You Need to Know About Corporate Law as a Business Owner - July 31, 2023
A Guide to Negotiating Corporate Law Contracts - August 7, 2023
Business Regulations and Corporate Law: When You Need a Lawyer - August 14, 2023
Maximizing Your Business Through Effective Corporate Law Planning - August 21, 2023
Preparing for Mergers and Acquisitions Through Corporate Law - August 28, 2023