Public offering Overview of public offering When governments, financial institutions, industrial and commercial enterprises, etc. issue securities, they can choose different investors as the issuance targets. Therefore, securities issuance can be divided into two forms: public offering and private offering.

Public offering, also known as public offering, refers to a business model in which the issuer sells securities extensively to unspecified members of the public through intermediaries and raises funds from targets without specific restrictions through public marketing and other methods.

In order to meet the needs of a wider range of investors, the public offering has no restrictions on the number of contract shares and starting amount.

Because the interests of many small and medium-sized investors are involved, regulatory authorities have very high requirements on the direction of use of public funds, information disclosure content, and risk prevention.

Private placement is a way to raise funds from a small number of specific investors.

Participants should generally have certain financial strength, risk identification and risk-taking capabilities.

In the case of public offering, all legal social investors can participate in subscription.

In order to protect the interests of investors, various countries have strict requirements for public issuance. For example, the issuer must have high credit and meet various issuance conditions stipulated by the securities regulatory authorities. It can be issued only after approval.

The carriers of public offerings include stocks, bonds, funds and other forms.

Advantages and Disadvantages of Public Offering The advantages of using public offering to issue securities are: ① Public offering targets many investors and has great fund-raising potential, and is suitable for issuers that issue a large number of securities and raise a large amount of funds; ② Public offering

The wide range of investors in the issuance can avoid hoarding securities or being manipulated by a few people; ③Only publicly issued securities can apply for listing on the exchange, so this issuance method can enhance the liquidity of securities and help improve the social credibility of the issuer

.

However, the public offering method also has certain disadvantages, such as the issuance process is complicated, registration and approval takes a long time, and issuance fees are also high.