New issues
Introduction|
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5. The prospectus
Companies planning to come to market are legally obliged to publish a prospectus. You can request a copy from the sponsors or, in many cases, download one from the internet. It will give you details of
- the company directors and advisors
- key statistics relating to the issue, e.g.
- the number of shares
- the price
- the market capitalization at that price
- the proceeds the company will receive from the IPO - the trading history of the company, usually for the past 3 years
- illustrative financial projections
- the main risk factors associated with investing in the company
- a profit and loss account
- a balance sheet
- notes to the accounts
- the executives' former directorships
- significant legal or tax matters
- how to apply for shares
- the terms of application.
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