What is a public offering?

A public offering is a sale of securities by a company to a large number of investors, typically through the use of an investment bank and a securities exchange. In Virginia, a public offering of securities is subject to both state and federal securities laws. For example, companies must submit a registration statement to the Securities and Exchange Commission (SEC) prior to the offering, which contains information about the company and the securities being offered. After the registration statement is approved by the SEC, the company can then proceed with the offering. Typically, the offering is to a large number of investors in a “public” offering. The offering is coordinated by an investment bank, which first seeks to determine the level of interest in the offering, while simultaneously advertising the offering to the public. The investment bank then sets the final terms of the offering and coordinates the actual sales process. After the offering is completed, the company will strive to get its securities listed on a major stock exchange, so that investors can easily buy and sell the securities.

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What is a public offering?

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