- Published on
Legal Terms – flotation
A process through which a public company can raise capital from the public by issuing securities (such as shares or debentures). It may involve a prospectus issue, in which the company itself issues a prospectus inviting the public to acquire securities; an offer for sale, in which the company sells the securities on offer to an issuing house, which then issues a prospectus inviting the public to purchase the securities from it; or a placing, in which an issuing house arranges for the securities to be taken up by its own or another's clients in the expectation that they will ultimately become available to the public on the open market.
A process through which a public company can raise capital from the public by issuing securities (such as shares or debentures). It may involve a prospectus issue, in which the company itself issues a prospectus inviting the public to acquire securities; an offer for sale, in which the company sells the securities on offer to an issuing house, which then issues a prospectus inviting the public to purchase the securities from it; or a placing, in which an issuing house arranges for the securities to be taken up by its own or another's clients in the expectation that they will ultimately become available to the public on the open market.
0 Comments