Define the term Public Issues - Floating New Issues
Under this method, issuing company directly offers to general public/institutions a fixed number of shares at a stated price through a document known as prospects. This is the most common method followed by join stock companies to raise capital through the issues of securities. The below information are given in prospectus:
(i) Name of the Company
(ii) Address of the registered office of the company
(iii) Existing and proposed activities
(iv) Location of the industry
(v) Name of Directors
(vi) Authorized and proposed issue capita to the public
(vii) Dates of opening and closing the subscription list
(viii) Minimum Subscription
(ix) Names of brokers/underwriter/bankers/managers and registrars to the issue.
(x) A statement by the company that it will apply to stock exchange for quotations of its shares.