What determines the number of shares the company has to sell in an IPO?the money they need?
Anisha asks:
Lets say a company(400,000 shares) wants to raise $1 million by selling half of the company(200,000 shares). would each share cost 5$?
If the same company wants to mainatin 70% of it’s shares(280,000) by selling only 120,000 shares, would each share cost $8.333?
Lets say a company(400,000 shares) wants to raise $1 million by selling half of the company(200,000 shares). would each share cost 5$?
If the same company wants to mainatin 70% of it’s shares(280,000) by selling only 120,000 shares, would each share cost $8.333?
This is my understaing of IPOs, so please if something wrong please tell me.
thank you
lithium
I didn’t understand?on what basis?
What are some factors that could influence a capital budgeting analysis?
Cinda asks:
were in the process of merging two companies together and someone asked me this question and I wasnt sure what they meant… any suggestions? What do you think is the best investment and financing option(s) when merging two large companies for growth? What about releasing an IPO, bonds, leases and retained earnings for addiontal funds? Any suggestions?
were in the process of merging two companies together and someone asked me this question and I wasnt sure what they meant… any suggestions? What do you think is the best investment and financing option(s) when merging two large companies for growth? What about releasing an IPO, bonds, leases and retained earnings for addiontal funds? Any suggestions?
How do companies profit from selling shares?
Juliane asks:
I am wondering if-and then how-a corporation continues to make money off its shares sold in the market. More specifically, once initial shares are sold, does a corp. continue to make $ every time the shares are traded? If not, can a corp. offer a new batch of shares any time it needs capital and, if so, is this considered a new IPO (if not, how would an investor know about the new shares)?
I am wondering if-and then how-a corporation continues to make money off its shares sold in the market. More specifically, once initial shares are sold, does a corp. continue to make $ every time the shares are traded? If not, can a corp. offer a new batch of shares any time it needs capital and, if so, is this considered a new IPO (if not, how would an investor know about the new shares)?
