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How a company sells a share issue to the public using the prospectus method?
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Why does a public company issue a prospectus but a private company does not do so?
Because the Securities and Exchange Commission requires them to do so (or does not require them to do so, for private companies).Basically, what it boils down to is that if you want to participate in the stock market, you have to agree to a whole bunch of rules as to what you're required and not allowed to do. If you don't care about participating in the stock market (because you're privately held), then you you're not subject to the same rules. A private company could in theory publish a prospectus, but it would mainly be a waste of money; the people who own the company are most likely intimately involved in it and already have a very good idea of how the company is doing, who the other owners are, etc.
What is Value Based Pricing?
Value based pricing is a method of pricing a product based on perceived value. This method sets aside the issue of production and distribution costs and focuses more on what the buyer is willing to pay. This method of pricing is the most popular way to bring more profits to a company's table.
How do you handle the situation if a customer asks for a service that not provide?
I will disscuss about the problem and communicate to company immediately and re-solve the issue.
What is the process from making an inquiry placing an order to delivery of product?
After a customer inquire about the cost of an item, he requests a quote on the item. If he likes the price, he will then place an order. The company will then issue a proforma invoice detailing all relevant information as cost, payment terms and method of delivery. The customer then makes his payment according to the terms of the proforma invoice, and the product is then shipped to the customer.
How can public relations techniques assist an organisation during periods of crisis?
finance pr as a PR activity will assist by ensuring that the there is stable finacial support incase of any issue.
Can private companies issue prospectus?
No, private companies cannot issue a prospectus as it is a formal legal document that is required to be filed with regulatory bodies when a company makes an initial public offering (IPO) to the general public. Private companies typically operate without issuing public offerings and therefore do not need to produce a prospectus.
What is the difference between shelf prospectus and prospectus?
A prospectus is a legal document that provides details about a financial security being offered to the public. A shelf prospectus is a type of prospectus that allows a company to register a security with the regulatory authority without selling the entire issue at once, enabling the company to offer securities incrementally over a period of time.
What is the Differentiate between deemed prospectus and abridged prospectus?
According to sec 56(3), no one can issue any form of application for shares or debentures of a company unless it is accompanied by a memorandum containing such salient features of a prospectus as may be prescribed. Such memorandum is called an abridged prospectus. As per SEC 56(3)2a such salient features are 1.name,address of the company, opening and closing of the issue, name and address of the book running lead manager (BRLM) 2.terms of the present issue 3.particulars of the issue 4.company management and projects 5.financial position of the company Deemed Prospectus Sometimes the company may instead of offering its shares and debentures to the public allot them to any intermediary called issuing house. These issuing house, in turn, allot them for sale to the public by advertisement or circular of its own. Such a prospectus is called deemed prospectus. the main purpose for issuing an offer for sale through an issuing house is that that the company saves underwriting expenses and in turn obtains the expertise of an issuing house.
What are Different types of prospectus?
Abridge Prospectus- Abridged Prospectus' is a shorter description of the prospectus and contains all the prominent features of a Prospectus. It go together with the application form of public issues. In other words it is executive summary of prospectus. Shelf Prospectus- Prospectus issued by banks and financial institution, by issuing one prospectus they can go for multiple issue of shares. Red Herring Prospectus- The share are offered to the public in price range shareholder can apply at the price suitable to them, all the information except the price of share is mentioned.
Why company issue IPOs?
Generally, a company has an Initial Public Offering in order to raise a good deal of money in order to expand/grow the business. In the IPO prospectus, the company will summarize exactly how they will use the proceeds and what is expected as a result (from a financial standpoint).
What is a deemed prospectus?
When the offer is made through ISSUE HOUSES , the document issued by them should contain the requirements of prospectus . the offer document is known as deemed prospectus
Can public company issue debentures?
Yes
Is it legal for a company not to issue any new capital stock to the public?
There is no requirement for a company to issue capital stock.
What are the advantages and disadvantages of share issue?
One of the biggest disadvantages of share issue for a company is that the company become dependent on the public after the issue. An advantage to share issue is that the company becomes more profitable.
What is capital subscription?
a public company can raise the required funds from the public by means of issue of shares and debentures. for doing the same,it has to issue a prospect which is an invitation to public to subscription to the capital of the company and undergo varous other formalities
Why does a public company issue a prospectus but a private company does not do so?
Because the Securities and Exchange Commission requires them to do so (or does not require them to do so, for private companies).Basically, what it boils down to is that if you want to participate in the stock market, you have to agree to a whole bunch of rules as to what you're required and not allowed to do. If you don't care about participating in the stock market (because you're privately held), then you you're not subject to the same rules. A private company could in theory publish a prospectus, but it would mainly be a waste of money; the people who own the company are most likely intimately involved in it and already have a very good idea of how the company is doing, who the other owners are, etc.
Can leverage analysis be done for a company which has not gone for public issue of shares?
nope
