public offering

Public Offering

The sale of equity shares or other financial instruments by an organization to the public in order to raise funds for business expansion and investment. Public offerings of corporate securities in the U.S. must be registered with and approved by the SEC and are normally conducted by an investment underwriter.

Notes:

Generally, any sale of securities to more than 35 people is deemed to be a public offering, and thus requires the filing of registration statements with the appropriate regulatory authorities. The offering price is predetermined and established by the issuing company and the investment bankers handling the transaction. The term public offering is equally applicable to a company's initial public offering, as well as subsequent offerings.

See also: Going Public, Initial Public Offering - IPO, Public Offering Price - POP, Securities and Exchange Commission - SEC, Secondary Offering, Subsequent Offering, Underwriting

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Public offering

Used in the context of general equities. Offering to the investment public, after compliance with registration requirements of the SEC, usually by an investment banker or a syndicate made up of several investment bankers, at a price agreed upon between the issuer and the investment bankers. Antithesis of private placement. See: Primary distribution and secondary distribution.

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public offering

The sale of an issue of securities to the public, an activity that usually occurs with the assistance of an investment banker that purchases the securities from the issuer and then resells them to the public. Also called distribution, offering.