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What does NYSE mean by ringing the bell?
Initial public offering (IPO) refers to the process that an enterprise issues shares to investors for the first time through a stock exchange in order to raise funds for enterprise development. When a large number of investors subscribe for new shares, they need to allocate shares by lottery, which is also called new share lottery. Investors who subscribe are expected to sell at a price higher than the subscription price.
Under the environment of China, listing can be divided into three ways: China company is listed in China or listed on Shanghai and Shenzhen stock exchanges (A shares or B shares); China companies go directly to overseas stock exchanges (such as new york Stock Exchange, Nasdaq Stock Exchange and London Stock Exchange) (H shares); China company indirectly set up an offshore company overseas and listed on overseas stock exchanges (red chips) in the name of the offshore company.
Extended data:
Advantages of listing
1, improve the financial situation
Funds obtained through stock listing need not be repaid within a certain period of time. On the other hand, these funds can immediately improve the company's capital structure, so that the company can borrow loans at lower interest rates. In addition, if the IPO is a great success and the future market trend is very strong, then the company may issue more shares at a better price in the future.
2. Use stocks to acquire other companies.
(1) Listed companies usually buy other companies through their shares (instead of paying cash). If your company is publicly traded in the stock market, shareholders of other companies will be willing to accept your shares instead of cash when selling them. Frequent trading in the stock market provides flexibility for these shareholders. When necessary, they can easily sell stocks or borrow money with stocks as collateral.
(2) The stock market will also make it more convenient to estimate the stock price. If your company is not listed, then you must evaluate it yourself and hope that the buyer will agree with your estimation; If they don't agree, you must bargain and determine a "fair" price acceptable to both parties, which is likely to be lower than the actual value of your company. However, if the stock is publicly traded, the value of the company is determined by the market price of the stock.
3. Use stocks to motivate employees.
Companies usually attract high-quality employees through stock options or equity gains. These arrangements often make employees feel a sense of responsibility for the enterprise, because they can benefit from the development of the company. The stocks of listed companies are more attractive to employees, because the stock market can independently determine the stock price, thus ensuring the realization of employees' interests.
4. Enhance the company's reputation.
(1) public listing can help the company improve its visibility in the society. Through press conferences and other public channels, as well as the daily performance of the company's shares in the stock market, the business community, investors, the press and even the public will notice your company.
(2) Investors will make decisions based on good news and bad news. If a listed company is well-run and full of hope, it will have a first-class reputation, which will provide the company with all kinds of inestimable benefits. If a company's trademark and products are well known, not only investors will notice, but also consumers and other enterprises will be happy to do business with such a company.
References:
Baidu Encyclopedia-List
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