The bitter memory of the "people's IPO»

Finansy16-12-2008 The bitter memory of the "people's IPO» In recent years, Russia's population has had time to learn a new economic term - IPO, and many thanks to the "people's IPO» even try themselves as investors. In a crisis, Russian companies have ceased to apply to such a mechanism to attract capital. A sharp drop in stock price permanently undermine the credibility of "people" of the investor. Shares on the stock exchange, in other words, the transformation into a public company - one of the main tools to attract funding for further development. The yield on the IPO (Inicial public offering - the first issue of shares), involves the sale of shares to an unlimited number of investors. Subsequently, these shares are beginning to turn freely on the exchange. Thus, the company can raise funds by raising the level of publicity, which is cheaper than to take the same means. However, despite the global financial crisis and falling stock markets, significantly diminished the number wishing to "accommodate", and willing to participate in this by buying shares. Reasons for caution on the issue of companies placing clear: because of falling stock markets and the liquidity crisis post today, the shares can only be at a low price, otherwise the buyer for the shares, you can simply not be found.