chapter 14
Companies selling shares to outsiders
A stockbroker urged me to buy a stock that would triple its value every year. I told him, ‘At my age, I don’t even buy green bananas’.
Claude Pepper
Most of the time you will be buying second-hand shares, but occasionally there is an opportunity to buy newly created shares directly from the company when it makes an issue to the public. When a firm does this by coming to a stock market for the first time it is called a new issue, a flotation or, following growing Americanisation, an initial public offering (IPO).
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