Equity Public Offering
Exam Weight: ~2 questions (2% of exam)
When a company wants to raise equity capital from the public, it must go through a formal offering process regulated by federal and state securities laws. This unit covers the primary ways companies bring equity securities to market: initial public offerings (IPOs), secondary offerings, and special purpose acquisition companies (SPACs).
Why do you need to know this? Understanding how securities come to market helps advisers explain the risks and mechanics of new issues to clients. IPOs and SPACs carry unique risks that differ from buying established public company shares.