public offering

public offering   n.  The sale of a new securities issue to the public by way of an underwriter, a transaction that must be registered with the Securities and Exchange Commission.

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.

Investopedia Commentary

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.

Related Links

IPO Basics Tutorial
Don't Forget To Read The Prospectus!

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

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.

Main Entry: public offering
Function: noun
: an offering of corporate securities to the general public or to potential purchasers whose level of knowledge or access to information about the securities is dependent upon the disclosures of the corporation —compare PRIVATE OFFERING
NOTE: Public offerings are subject to the requirements of the Securities Act of 1933 for filing a registration statement before the offering can take place.