Types of Share Issue

Types of Share Issue

The following are the important types of share issue

1. New Subscription 

This is also known a public offer . The organization set a fixed price at which the shares can be purchased by General Public.

2. Right Issue 

The second type is to allot shares to current share holder of the organization. This issue is normally proportionate to number of share held by existing share holder. This issue normally below the market price.

3. Issue by Tender 

 This is also offer to general public, however, in this case the price is not set by the management rather share prices are issued to the highest bidder.

4. Placing of Shares 

 This is the combination of General public offer and offer to private party normally a commercial bank. The bank take shares from the entity and offer to its client. However some percentage is offer to general public as well.