One of the methods of placing the main securities is issue. It is a set of sequential actions of the issuer in order to place securities.
Instruction manual
1
The purpose of the issue is to attract additional financial resources. It also takes place during the establishment of a joint stock company, in case of a change in the par value of previously issued securities or when issuing securities with new properties.
2
Emission can be primary and subsequent, as well as open and closed. Open is also called public. In this case, the securities are placed among an unlimited number of investors, it is accompanied by an official public announcement, with the disclosure of information. In the event of a closed issue, shares or bonds are offered to a predetermined circle of persons.
3
It is usually carried out with the involvement of professional participants called underwriters. They serve all its stages from the selection of parameters to placement among investors.
4
The emission procedure includes the following steps:
- decision-making;
- state registration of the issue;
- production of security certificates, in case of its documentary form;
- placement of a security;
- registration of a report on the results of the issue;
- making the necessary changes to the charter of the company when issuing shares.
5
In the case of open subscription or closed, if the number of investors exceeds 500, the procedure additionally includes:
- registration of the prospectus;
- disclosure of information contained in the prospectus;
- disclosure of information contained in the report on the results of the issue.
6
Prior to state registration, any actions with securities, including advertising, are prohibited.
7
The most important point for the issuer is the placement of issued securities. It is carried out at the issue price. The procedure for its determination must necessarily be recorded in the prospectus. It may vary depending on market conditions. The share issue price may not be lower than its face value, but may be higher than it. In the case of a bond, the placement price can be any.
