What Go Public means?
Go Public is a term used to describe the process of becoming a public company. Go Public is commonly used in the United States of America.
How to become a public company?
In the United States of America, depending which State the company is incorporated, the incorporated company or corporation is a “Private Company”. The going public process would mean the filing of the Registration Statement (“Form S-1”) with the United States Securities and Exchange Commission (“SEC”). Once the SEC declares the Registration Statement effective, the company becomes an approved “Public Company” with the approval to raise capital by selling the securities of the company through an Initial Public Offering (“IPO”). Form S-1 is the “Prospectus”, a term commonly used within the British Commonwealth countries. See Prospectus.
What are the securities or stock exchanges available for listing?
In the United States of America, a public company can list their securities for public trading in any one of the following stock exchanges:
- New York Stock Exchange (“NYSE”)
- National Association of Securities Dealers Automated Quotation System (“NASDAQ”)
- Over the Counter Bulletin Board (“OTCBB”)
- OTC Markets Group (formerly known as the “Pink Sheet”) (“OTC Markets”)
In 2008, the NYSE Euronext acquired the American Stock Exchange (“AMEX’) and became the NYSE AMEX Equities in 2009. OTC Markets is off-exchange trading between two parties for securities, without the supervision of an exchange. About 10,000 securities listed on board OTC Markets.
Who regulates securities trading?
In the United States of America, the Financial Industry Regulation Authority (“FINRA”) is the regulator for the trading of securities on an exchange. After the SEC declares the Registration Statement effective, the approved public company applies for listing with FINRA (“15c2-11”). Upon approval sought, FINRA will issue a trading symbol or stock symbol for the public company and the securities can then publicly traded.
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Categories: Public Company, IPO, OTC Markets, SEC and FINRA