I am interested in how the amount of shares is determined initially and how the company determines how many shares they will keep. Also, what is the biggest “Pro” of going public and the biggest “Con”?
In: Economics
A company that wants to go IPO gets a bunch of banks (underwriters)to buy a set number of shares at a certain prices stipulated in an agreement and file paperwork with the regulatory agency (SEC) in the US and with a stock exchange. The banks then sell those shares on the stock exchange where anyone can buy them i.e. the public.
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