Corporate Accounting-Share and Share Capital

A company can raise capital through:

  • Public 
  • Private placement
  • Rights issue or bonus issue
Fund can be raised through public via IPO or further public offer 

Most IPOs go though book building to raise capital.
Where the company has a strong past record as well as image in the market. Usually one fixed price is decided so that the best public response can be generated to the issue. Where the opposite is the case it then goes for book building.
Book building means a process undertaken to elicit demand and to assess the price for determining the value of the specified securities

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