Questions and answers about the issuance method of securities

• What are the issuing methods of investment bank securities private placement?

  Private offering of investment bank securities The issuance of securities can be divided into public offering and private offering. The previous securities underwriting is actually public offering

  shares

  1 answer

• What are the issuing methods of non-public securities?

  Exclusive sale (including balance exclusive sale) and agency sale.

  shares

  3 answers

• What is a securities issue?

  Securities issuance refers to the activity that an enterprise sells securities representing certain rights to investors for the purpose of raising funds. There are generally two ways of securities issuance: direct issuance and indirect issuance. Direct issuance, namely proprietary issuance, refers to the issuance method in which a securities issuing company organizes subscription and sales by itself without entrusting other institutions, and directly raises funds from investors. Its advantages are: the issuance cost is low, and the issuer can directly control the issuance process to achieve its intention

  Education/Science

  1 answer

• Is underwriting required for issuing securities?

  The issuance of securities may not always be underwritten by securities companies. The way of securities issuance can be divided into direct issuance and indirect issuance according to whether there is an intermediary or not. The direct issuance refers to the issuer selling securities directly to investors; Where an issuer entrusts an institution specialized in securities underwriting to sell securities on its behalf, it is an indirect issue. According to the provisions of the Securities Law, the securities issued by the issuer to unspecified objects should be underwritten by securities companies according to laws and administrative regulations

  Vocational training

  1 answer

• What is the general issuance method of securities?

  In general, indirect issuance is a basic and common way, especially public offering, which mostly adopts indirect issuance; Private placement is dominated by direct issuance

  shares

  1 answer

• What is the indirect issuance of securities?

  Indirect issuance is also known as securities underwriting business, which has two statutory ways, namely, consignment and underwriting. In the way of securities consignment, the relationship between the securities company and the issuer is a principal-agent relationship. The responsibility of the securities company is to try to sell securities during the underwriting period, and all unsold securities at the expiration of the period are returned to the issuer, basically without taking any risk. Accordingly, the fees charged by the securities company are also small; For the issuer, it has to bear all the risks

  law

  1 answer

• Why do investment banks recommend companies to issue securities through consignment rather than underwriting?

  No, of course, investment banks are willing to sell on a commission basis. If they can't sell, they can also return it to the company. The company must say that it is underwriting (it is estimated that this is what you mean by underwriting, in fact, underwriting is a big concept, including consignment). Because if they can't sell, they will be handed over to the investment bank, and the company will steadily get a certain amount of capital. This is the key point of negotiation when selecting an investment bank Selling on a commission basis is very risky for the company issuing bonds. It may have been a long time in vain and given to the investment bank

  bank

  1 answer

• How can we distinguish the securities issued by the state according to the way of sales?

  The securities issued by the national government can be divided into two types according to the different ways of sale, one is called the securities for public sale, and the other is called the securities for private sale

  shares

  1 answer

• What are the advantages of issuing securities by public offering?

  The advantages of issuing securities by public offering are as follows: ① Public offering targets a large number of investors. Potential fund raisers are suitable for issuers with a large number of securities issues and a large amount of funds raised: ② Public offering has a large range of investors, which can avoid hoarding of securities or being manipulated by a few people; ③ Only publicly issued securities can be applied for on the exchange, so this issuance method can enhance the liquidity of securities and improve the social reputation of issuers.

  Vocational training

  1 answer