Direct Public Offerings
A Direct Public Offering (DPO) enables a company to sell shares directly to the public, bypassing intermediaries like investment banks, and become publicly traded. Compared to an IPO, a DPO offers lower costs, less paperwork, and reduced effort. The issuing company retains control over the share price but must still comply with regulatory requirements. This streamlined approach makes DPOs an attractive option for companies seeking to raise capital efficiently while maintaining greater influence over the process, though adherence to legal procedures remains essential.
Related Terms
Basing
Basing occurs when a security’s price moves sideways after an extended decline, forming a “base”...
Interest Coverage Ratio
The Interest Coverage Ratio (ICR) measures a company's ability to pay interest on its outstanding...
Advance Payment Guarantee/Bond
An Advance Payment Guarantee (APG) or Bond is a contract where a third party agrees...
Delivery Trading
Delivery trading involves buying/selling a security and settling it by taking/giving delivery. Unlike intraday trading,...
Income Stocks
Income stocks are shares of companies offering steady income, usually through regular dividend payouts. Compared...
Deferred Tax
Deferred tax in financial statements denotes future tax liabilities or tax assets stemming from temporary...
