How To Get Your Company On The Stock Exchange
Here are 6 tips on how to get your company traded publicly.
In order to get your business on the stock exchange you will need to go through the underwriting process. This process comprises of an investment bank getting investors to purchase the stock of your business. This underwriting process enables a company to go from private to a publicly traded enterprise. Here are the tips on how to get your company traded publicly.
Appoint an investment banker
You will need to hire a reputable investment banker who can increase your company's chances of appearing on the stock market by creating more appeal and ensuring that all the paperwork with the Securities and Exchange Commission (SEC) goes smoothly.
Smooth over the details
You will need to make sure the details are stipulated with your banker in terms of what type of security you will offer and the finances that you aim to raise. The bank will usually either provide a firm commitment (guarantee the sale of a certain amount of securities) or best efforts agreement (bank sells the stock but doesn't make any guarantees on the amount sold).
Compile the registration statement
Compile the registration statement with the Financial Services Board, who will review the company's management background, legal issues, what the money will be used for, and insider holdings.
While the Financial Services Board is reviewing your registration, you and the investment banker will need to create hype in the stock. Although you won't know when the release date is, you will need to try and sell stock to investors before it even hits the market so that it starts off strong and the price can rise faster.
Select a price for the stock
Select a price for the stock as you aim to make as much money as possible. The higher you start, the more you will be able to make per share. This is why you and the investment bank will need to carefully plan the exact figure you aim to charge per share.
Track the stock
It is vital to track the stock on the stock market as it is likely to fluctuate up and down. Shares will and the finances will be given to the business so that it can further invest it to make the company stronger.