Types of entries in equity market

Equity Market

Stock exchange is normally is considered to be equity market. This is a place where the shares of listed/quoted companies are bought and sold. The two main objective of equity market.

1. Investors are available to companies
2. Investor can readily sell their shares

Types of entries in equity market

Basically there are four types of entry available for companies.

1. Issue share to public at fixed price
2. Issue shares by tender
3. Private company get listed
4. Issue share to institutions

1.Issue share to public at fixed price

Normally this method is adopted by in case of initial subscription. The company advertised in national newspaper to get the share of a company at a fixed price. 

If the share applied is more than shares offered then the company decides the successful bidder by ballot. The each subscriber offered equal number of shares in case of subscription.

2.Issue share by tender

It is kind of open offer to the public or financial institution to bid for the share in junk. The highest bidder is selected. The price is fixed by open operation of the market.

3 Private Company listed

There is shares are offered to public rather public can buy shares once the company is got enlisted in stock exchange.

4. Issue Share to institution

Under this method shares are offered to financial institution. This method is a quick fund raising with minimum issuing related cost and procedures.