Sharechat Logo

What are share issues and placements?

Wednesday 23rd January 2002

Text too small?

Q: What are share issues and placements? Where can I find information on them?

A: A share issue is when a company raises money (also called capital or funds) either by offering shares to the public (often called an 'IPO' - Initial Public Offering) or by making a 'placement'.

Almost anyone can buy shares in an IPO, as long as you meet all the requirements set out in the prospectus or investment statement.

Sometimes a company may also make what is called a 'placement' of shares. Placements are done privately and usually to institutions or very wealthy individuals. The company issuing the shares is also trying to raise money but does so by placing a parcel of the company's shares with fund managers or insurance companies for a fixed price.

Most people don't find out about a share placement until after if happens. Small individual shareholders are not included in placements and will only find out about them in the company's annual report or the placement announcement the company provides to the NZSE. Share issues are usually available on broker's websites and the pros and cons of various upcoming issues are regularly discussed the ShareChat Forum.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Where can I find information about companies on the secondary board?
Why do NZ companies list offshore?
How do I find what specific companies make up a sector index?
What is the difference between a renouncable and non-renouncable rights issue?
What advice can you give a beginner?
How do I begin investing in the sharemarket?
Where can I get investment information or advice?
How do I research a company I may want to buy shares in?
How much money do I need to start buying shares?
How do I choose a broker?

IRG See IRG research reports