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Describe the process that a company is able to raise funds on the primary market by...

  1. Describe the process that a company is able to raise funds on the primary market by issuing an Initial Public Offering
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Answer #1

Company can manage the funds through raising it by offering an initial public offer in the primary market through approaching an underwriter who will be offering them with the price at which shares are to be issued.

Once prices are fixed by the underwriter, then the company will have to file the prospectus with the securities and exchange commission and then it will be allowed by regulatory bodies to issue the securities and it can then open the window of subscription of the shares by the public and once the shares are subscribed, then it will be allotted as per the number of subscription to the allotment so this will be the process of oraising the funds from the primary market.

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