There are many ways for shares to be increased or reduced in a company. This can vary from a share buy-back, stock split, reverse stock split, initial or additional public offerings or a stock option plan. Today’s article will go through these various methods and how they benefit investors in more ways than one.
An initial public offering (IPO) is when a private company’s shares become available to the general public for the first time. This may involve the company issuing new shares as part of the offering or an existing owner selling shares for the transaction. The issuance of new shares increases the number of shares in circulation and allows for the company to use that new capital (money) to further its business operations. In the case of an offer for sale, the existing investor benefits by being able to partially or fully exit his/her investment. If the investors owns any shares after the IPO, he/she can benefit from the p
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