What Are the Steps Involved in Issuing New Shares?
To issue new shares, a company typically follows a structured process. First, the company needs to determine the purpose and amount of capital required. Next, it seeks approval from its board and existing shareholders. The company must then prepare a prospectus or offer document, detailing the terms of the share issue. The final steps include marketing the offer to potential investors, setting the share price, and finally, allocating the shares to investors.