In financial markets, an equity issuance is the sale of new equity or stock by a firm to investors. Equity issuance can involve a private sale, in which the transaction between investors and the firm takes place directly, or publicly, in which case the firm has to register the securities with the authorities and the sale takes place in an organized market, open to any registered investor, a process more akin to an auction. Two common types of public equity issuance are initial public offerings (IPOs) and seasoned equity offerings (SEOs). This is one of the ways firms finance themselves, that is, they obtain funds from investors in order to engage in business.
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Some articles on equity issuance:
... banks, such as Goldman Sachs or Morgan Stanley are frequently intermediaries in the equity issue process, and for some of these firms the fees associated with IPOs are a substantial part of their income ... the characteristics and business plans of the firm which is issuing equity and then recommend a minimum purchase price to investors ...
Famous quotes containing the word equity:
“If equity and human natural reason were allowed there would be no law, there would be no lawyers.”
—Christina Stead (19021983)