Stock Offerings Procedure

The Stock Offerings Procedure helps generate the desired funds through offering company stock publicly. The procedure employs best practices in conducting stock offerings effectively and efficiently. It applies to Top Management, Finance, and Accounting Departments. (12 pages, 1693 words)

Stock Offerings Responsibilities:

Top Management is responsible for creating the stock offering plan, and overseeing/reviewing the stock offering process.

The CFO (Chief Financial Officer) is responsible for advising Top Management in the stock offering process, and for executing the stock offering process.

Department Managers should assist in the stock offering process as necessary.

The Board of Directors approves all stock offerings.

Stock Offerings Definitions:

Due Diligence – Investigation into the company by the SEC Regulators and potential investors to ensure the representations made in the company’s prospectus about its financial condition, operations, and other facets of the company are correct and verifiable.

Investment/Underwriting Bank – A bank selected by the company to advise and assist in executing an initial or secondary public offering.

Prospectus – A formal legal document providing details about a corporation; generally used during a stock offering.

SEC General Rules and Regulations of the Securities Act of 1933 (17 CFR 230, USA) – Securities law containing rules for public stock offerings.

United States Securities and Exchange Commission (SEC) – Government commission created by the Securities Exchange Act of 1934 to regulate securities markets and protect investors.

Stock Offerings Procedure Activities

• Stock Offering Plan
• Executing the Stock Offering
• Reviewing the Stock Offering Process
• Improving the Stock Offering Process

Stock Offerings Procedure References

• Securities and Exchange Act of 1934
• Securities Act of 1933
• Sarbanes-Oxley Act of 2002

Stock Offerings Procedure Forms

• Stock Offering Plan Form