In a direct public offering (DPO) or direct offering, a company raises capital by offering its securities directly to the public.
DPO allows a company to eliminate the intermediaries that are usually part of such a proposal and ultimately reduce costs.
self-raising money allows the company to avoid the restrictions of banking and venture financing; placement conditions are established exclusively by the issuing company.
A pre-DPO company must submit documents of compliance to the regulatory authorities of each state where it plans to place securities; but, unlike an IPO, the firm usually does not need to register with the SEC.
A red herring is a preliminary prospectus filed with the SEC, usually in connection with an IPO, that omits key details of the issue, such as the price and number of shares offered.
In an undivided or eastern account, each underwriter takes responsibility for the sale of any shares that remain unsold by the other members of the syndicate.
A Western account is a type of AAU in which the parties to a consortium of underwriters agree to be responsible only for their own allocation of a new issue of securities.
The Depository Trust and Clearing Corporation (DTCC) is a financial services company that provides clearing and settlement services for financial markets.
An Export Trading Company (ETC) deals with exports for clients, focusing on all legal requirements and regulations that a company must follow before a country will allow its goods to be exported.