Sure kid, Firstly the company will prepare all its paperwork and securities with the SEC.
Hello officers, would you all be so kind to me and explain how the IPO process works?
Next the company will choose a bank and underwriters to lead the process.
Lastly the underwriter will begin meeting with potential investors and set the price of the stock. Then its released on a public stock exchange!
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Sure thing buddy! First companies will determine the offering price. Next they will create prospectuses. These processes will prepare companies for the primary market and give them the opportunity to hire underwriters.
Lastly the company will receive any raised capital, and then they will finally list the stock on the primary market
Next the company will market its securities to potential investors, if successful the company will then sell them.
Hello fine gentlemen, would any of you care to explain to me how primary markets work?
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First the company will draft Red Herring Prospectus (DRHP). Next the regulatory body reviews the DRHP. After that the company will finalize the RHP, which is distributed to potential investors. Once everything is finalized, the company will update the RHP to the final prospectus.
Absolutely buddy! The first thing that happens on secondary markets are the listing of securities and IPO's. Next investors will buy and submit orders. After that the secondary market will match buyers and sellers based off their orders. Lastly, once a trade is executed the trade details are verified, and ownership updated. The price will be determined by supply and demand.
Hello fine sirs, I have been out on the street gathering information on how IPO's work in different types of markets. You two are the last pieces of the puzzle, would you both be so kind to explain to me the processes of secondary and red herring markets?