This is a way to raise funds to finance the current activities of an organization or to implement investment projects.
Kinds
Depending on the timing of the issue, the issue is divided into two types:
Primary. It is carried out when a legal entity is created or the first issue of a specific type of securities occurs. For example, a JSC has passed state registration and issues shares. An initial public offering is possible in a situation where the operating company previously placed exclusively common shares, but by decision of the management, an issue of preferred securities was organized.
Secondary. This is an emission process organized by the operating organizations for the second and subsequent times.
Depending on the procedure, there are three types of issue of shares:
Distribution - the distribution of securities among a predetermined circle of persons, which does not imply the signing of purchase and sale agreements.
Subscription is a procedure for placing securities among a predetermined circle of recipients or an unlimited audience. Sale and purchase agreements are signed with the new shareholders.
Conversion - placement of securities of a specific type with their further replacement with others. The terms of conversion are fixed in advance by the authorized persons of the company. More here - https://www.worldbank.org/en/about/corporate-procurement/business-opportunities
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