公眾股的發行方案探討(ppt 23頁)（英文版）

公眾股的發行方案探討目錄：
1、The Public Issue
2、Alternative Issue Methods
3、The Cash Offer
4、The Announcement of New Equity and the Value of the Firm
5、The Cost of New Issues
6、Rights
7、The Rights Puzzle
8、Shelf Registration
9、The Private Equity Market
10、Summary and Conclusions

公眾股的發行方案探討內容提要：
The Cash Offer
There are two methods for issuing securities for cash:
Firm Commitment
Best Efforts
There are two methods for selecting an underwriter
Competitive
Negotiated
Firm Commitment
Under a firm commitment underwriting, the investment bank buys the securities outright from the issuing firm.
Obviously, they need to make a profit, so they buy at “wholesale” and try to resell at “retail”.
To minimize their risk, the investment bankers combine to form an underwriting syndicate to share the risk and help sell the issue to the public.
Best Efforts
Under a best efforts underwriting, the underwriter does not buy the issue from the issuing firm.
Instead, the underwriter acts as an agent, receiving a commission for each share sold, and using its “best efforts” to sell the entire issue.
This is more common for initial public offerings than for seasoned new issues.
The Announcement of New Equity and the Value of the Firm
The market value of existing equity drops on the announcement of a new issue of common stock.
Reasons include
Managerial Information
Since the managers are the insiders, perhaps they are selling new stock because they think it is overpriced.
Debt Capacity
If the market infers that the managers are issuing new equity to reduce their debt-equity ratio due to the specter of financial distress the stock price will fall.
Falling Earnings.

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