Direct Public Offerings
A Direct Public Offering (DPO) enables a company to sell shares directly to the public, bypassing intermediaries like investment banks, and become publicly traded. Compared to an IPO, a DPO offers lower costs, less paperwork, and reduced effort. The issuing company retains control over the share price but must still comply with regulatory requirements. This streamlined approach makes DPOs an attractive option for companies seeking to raise capital efficiently while maintaining greater influence over the process, though adherence to legal procedures remains essential.
Related Terms
Company Debentures
A debenture is a type of debt instrument that companies issue to raise funds. In...
Differential Voting Rights
Differential Voting Rights (DVRs) are special types of shares issued by companies that provide shareholders...
Lead Underwriter
The lead underwriter is the financial institution responsible for overseeing and managing an Initial Public...
Control Regular
Regular mutual fund plans offer limited control to the investor compared to direct plans. In...
Iceberg Order
An Iceberg Order is a trading strategy used to break down large orders into smaller...
Expense Ratio
Expense is the annual fee charged by a mutual fund to cover its operating costs,...
