Shareholding

If your organization is incorporated as a company, you will probably want a strategy to raise funds by issuing shares. The laws vary greatly from place to place and category of incorporation, and large public companies are especially subject to lots of regulatory requirements.

1. How much money do you need to raise through share offerings?
2. What classes of share will you offer? For example, will you offer shares to employees as part of their remuneration?
3. How much of the company would you offer for sale?
4. Does the share offering have particular implications for how you will own and manage it?
5. Will you register with a stock exchange? When? (It is usually very expensive and requires considerable preparation.)
6. Timeline.
1. Pre-incorporation offer for founding shareholders
2. Private offerings
3. Pre-release offering. This is used to attract major shareholdings to decrease risk for IPO investors.
4. Initial Public Offering
7. What are the prospects for shareholders? What particular business ratios do you need to provide information on?
8. What risks are involved? What if shares don’t sell? What if someone tries to take control of the company?