Getbig.com: American Bodybuilding, Fitness and Figure
Getbig Bodybuilding Boards => Gym/Stores/Industry Business Board => Topic started by: Eyeball Chambers on May 05, 2008, 12:46:35 AM
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How does a Corporation determine how many shares to sell? Also, how do they determine what percent of the Corporation each share should be worth?
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http://en.wikipedia.org/wiki/Initial_public_offering] (http://en.wikipedia.org/wiki/Initial_public_offering)
http://www.activefilings.com/en/information/faq_shares.htm (http://www.activefilings.com/en/information/faq_shares.htm)
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How does a Corporation determine how many shares to sell? Also, how do they determine what percent of the Corporation each share should be worth?
Depends on what kind of offering you want to do. Being a public company is very expensive these days because you have to make a lot of disclosures. If you want to go public, you probably want to issue 3-400,000 shares at the minimum and get a float of around $10 million to make it worthwhile. If it's a private offering, you can do much less. Underwriters usually figure out what the market will bear and price shares accordingly.
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http://en.wikipedia.org/wiki/Initial_public_offering] (http://en.wikipedia.org/wiki/Initial_public_offering)
http://www.activefilings.com/en/information/faq_shares.htm (http://www.activefilings.com/en/information/faq_shares.htm)
Depends on what kind of offering you want to do. Being a public company is very expensive these days because you have to make a lot of disclosures. If you want to go public, you probably want to issue 3-400,000 shares at the minimum and get a float of around $10 million to make it worthwhile. If it's a private offering, you can do much less. Underwriters usually figure out what the market will bear and price shares accordingly.
Excellent!
Thanks for the info!