Subsequent Offering

Categories: IPO, Banking

See: Secondary Offering.

Subsequent. As in: the next in a sequence. What this term usually refers to is a series of money-raisings that are linked by coming from the same company, or the same class or type of offering.

Whatever.com completed its IPO. Its stock was then liquidly trading. 6 months and change passed, and now insiders want to sell and buy Porsches. So the company has a secondary offering: an offering subsequent to their IPO and the insiders...offering their shares for sale to a hungrily buying public.

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Finance: What is a subscription price?3 Views

00:00

Finance allah shmoop what is a subscription price Well in

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the old days you'd actually subscribe to these things They

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were called magazines and they came on this stuff called

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paper and there were tons of them Different focuses our

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folks i of your fancy pants gardening people time and

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lifestyle There was a set price if you wanted a

00:26

year These things you paid it while the term relates

00:28

in all things finances well In this sense a subscription

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agreement applied directly to a new issue of shares from

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a company or securities anyway raising money teo you know

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pay off their new fleet of corporate jets are open

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up china as a new market or for that pesky

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lawsuit they got hit with for their products Apo supposedly

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sticking teo certain types of skin So in this type

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of offering offered preemptively to already existing holders of shares

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a subscription agreement outlines the terms at which current investors

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can invest in the new offering like fioretti ona hundred

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shares of snail co The shipping company that vows to

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send your packages slowly and carefully and they're trading and

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i'll say eighty bucks each Well then that company might

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have a rights offering in which current shareholders get the

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right to buy new shares at say seventy seven bucks

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each Well that's seventy seven dollar price is fixed as

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the subscription price I'ii buyers of the incremental sale of

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securities Get the right to pay seventy seven bucks for

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them and they usually come in a discount to the

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current market price So as the kind of sort of

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semi guarantee that the full allotment of shares that the

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company wants to sell well in fact actually be sold

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to people who have already indicated that they like the

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company or they wouldn't be holding the shares in the

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first place And that goes true Ah even if those 00:01:42.119 --> [endTime] shares are sold very very slowly

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