The company charter gets amended, namely - the charter capital and the number of the shares in turnover.The remaining shares are placed in the stock market where they become available to anyone who wants them. The issued shares are sold among the existing investors of the company.The authorities register the additional issue by all legal procedures.The decision is ratified based on the company charter.They agree on the size of the issue and the initial share price.
How can a company attract money?Ī profitable company can allocate a part of the profit to reaching new goals.
This measure is meant to neutralize negative factors that influence the economic situation of the company, to help expand the business, or to launch new projects that require investments. Under additional issue we understand issuing and selling new shares of a company in order to attract new capital. Today’s article is devoted to the details of additional issue of shares. Not all investors understand how it influences the capitalization of companies or their share prices, so feel vulnerable in such situations. When you invest long-term and medium-term, you can face such a stock market phenomenon as additional issue of shares.
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