Common stocks?
Answers:
Larger companies issue common shares to the public through an IPO (initial public offering). In order to do this, they need to be sponsored by an investment bank, who matches interest for their stock to investors.
However, most "new" businesses are not large enough to be able to issue common shares to the public. In this case, they can do what is called a private placement. Generally, they will still need to use an investment bank, but the rules and regulations associated with a private placement is significantly less onerous. It is still common stock, but the shares are issued to a smaller pool of investors who must be accredited.
Even smaller businesses, say a small partnership or corporation, may sell common stock to a few investors. The sale of these common shares are generally closed and restricted in some way. Again, the rules and regulations governing these securities is significantly less onerous than an IPO.
The business issues common stock through an initial public offering. There are many rules and regulations. Lawyers are normally involved to make sure you follow all the rules. Good Luck
You need to get backing from an investment banker and have a very sound financial plan.
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