Increase of the market value of securities on the stock market...

Increase of the market value of securities on the stock market

If the situation with the register of shareholders is favorable for the issue of shares, then before implementing this issue, it is necessary to carry out a number of activities related to the preparation of the stock market for the acceptance of new securities. The most significant is the increase in the exchange rate.

If the issuer's securities are not traded on the market, certain costs must be incurred and the issuer's securities should be removed to the stock market. This procedure may imply, in United States conditions, access both to the organized over-the-counter market and to the organized exchange market. Currently, on the market of corporate securities, the most effective trading exchange market is the trading platform of the Moscow stock exchange, which emerged as a result of the merger of the Moscow Interbank Currency Exchange (MICEX) and the United States Trading System (RTS). It should be noted that the passage of the listing procedure (the acceptance of securities for trading on the trading floor) is not an end in itself and is a separate task within the framework of the general strategy of using the opportunities of the stock market.

After the issuer has designated its securities in the stock market, a long and laborious work begins, connected with the increase of the market value of securities. To do this, it is advisable to use the services of professional stock market participants. Moreover, the coordinated work of several brokerage firms or investment companies turns out to be more effective, which allows them to successfully conduct a quotation policy in the stock market, playing on raising or lowering, depending on the situation developing on the market and the needs of the issuer.

As a result of the preparatory work carried out and the use of qualified assistance of professional participants of the stock market, it is possible to significantly increase the exchange value of securities of the joint-stock company. As the experience of the United States stock market shows, it is quite realistic to raise the exchange value of securities at times. This, in turn, will allow placing new emission in the stock market at a significantly higher market value. Thus, having produced fewer securities, i.e. making smaller changes in the alignment of forces in the composition of shareholders, you can get more investment funds necessary for the joint-stock company.

Using the services of professional stock market participants, you can try to implement the spraying of shares when making an open subscription to securities. At present, given the specifics of the United States conditions, this is a rather laborious way, suggesting a not very high probability of obtaining a positive result, but initially it would be unreasonable to reject the possibility of using it.

Implementing a closed subscription for shares

One way to safely place shares is to conduct a private subscription to securities. This way is quite reliable in terms of maintaining the existing balance of power, but as an instrument for attracting investment funds, it seems not the most effective. This circumstance is due to the fact that a closed subscription to shares either does not expand the composition of shareholders in general, or is oriented to placement of emission among a certain range of new investors. In the first case, when old shareholders are involved, it is extremely difficult to obtain new investment funds from them for the development of the joint-stock company. In the second case, the emergence of a new investor may lead to a disruption of the existing balance of power and be unprofitable for a strategic investor.

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