How OJSC Can Sell Its Shares

Table of contents:

How OJSC Can Sell Its Shares
How OJSC Can Sell Its Shares

Video: How OJSC Can Sell Its Shares

Video: How OJSC Can Sell Its Shares
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An open joint stock company is an organization whose members can sell their shares without the consent of other shareholders. Thanks to the sale of securities, companies receive additional investments, and the owners of shares receive profit from the development of the enterprise in the form of dividends.

How OJSC can sell its shares
How OJSC can sell its shares

Instructions

Step 1

Sell securities by publicly listing them on exchanges. This is the first way to sell promotions. An institutional broker can also act as an intermediary for a public offering. Free sale allows the company to receive additional funds for development, as well as to conduct an objective assessment of the company's value. The latter can serve as a tool for assessing the work of employees and is very important for possible acquisitions or mergers.

Step 2

The quotation of shares in such a sale is speculative. The initial price is the calculated one, and the subsequent one is already determined by the availability of demand, which depends largely on the reliability and development of the company that owns the shares.

Step 3

Use private placement. In this case, a certain block of shares is sold to a limited number of people, for example, one or several institutional investors, who always carefully analyze the market situation to predict the successful development of the company. The price of a share in such a transaction is fixed and largely depends on its par value and profitability. In such a situation, a sale and purchase agreement is concluded, and the transaction itself is closed.

Step 4

The reasons for such a transaction may be to attract the necessary investment, merge with another company, or become part of a more developed and visible organization. Also, the OJSC can sell part of the block of shares to some well-known and respected person, which will consolidate a reliable reputation for the company and, again, lead to an increase in profits.

Step 5

Another way to sell shares is to sell securities to employees of a joint stock company. This can be done in order to increase the responsibility and motivation of employees, to strengthen the team spirit and smooth out social contradictions.

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