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samsonDot
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Introduce Yourself Here - Don't Be Shy!!
samsonDot replied to trading4life's topic in Beginners Forum
Hello All- I am new to the tread and hopefully hear to learn more about TA and Options trading as well as much more.... I am currently reading the Jason Kelly book "Neatest Guide" which synopses the popular minds in trading... Here is a question I have... When a company goes public, my understanding is that it contacts an IB who then raises the capital and sells shares to private investors first, etc. My question is how are those new shares created...(i.e. say a company before going public has 100 shares and 50 are issues and 50 are in treasury, do the 50 in treasury get allocated to the new money coming in and there are still 100 shares totally outstanding? Or is there all of a sudden 1000's of new shares in addition to the 100 that were privately held (50 in treas and 50 to owners). Thanks SD