Hot Issue

• Flotation, also known as “going public”, is the process of taking a private company public by issuing shares available for purchase by the public.

• Book building is the process by which an underwriter attempts to determine the price at which an initial public offering (IPO) will be offered.

• In a direct public offering (DPO) or direct offering, a company raises capital by offering its securities directly to the public.

• The public offering process of a company includes several important and delicate steps that protect the company and potential investors.

• A hot IPO is an initial public offering that generates a lot of interest from the media and demand from investors.

• An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public as part of a new share issue.

• Ladder is a financial term used in different ways depending on the industry.

• New issues, whether stocks or bonds, are a means of raising capital for a company.

• Offer means when a company issues or sells securities.

• Oversubscription refers to the issuance of shares for which demand exceeds available supply.

• Placement of pre-IPO is the sale of large blocks of shares of a company before its listing on a public exchange.

• 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.

• A road show is a series of presentations held at various locations leading up to an initial public offering.

• The IPO may be deliberately low to boost demand and encourage investors to take risks with the new company.

• 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.

• An IPO with venture capital refers to an initial public offering of shares in a company previously funded by private investors.

• 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 adjusted closing price changes the closing price of a share to reflect the value of that share after accounting for any corporate action.

Allocation is the systematic distribution of business resources between different entities and over time.#

• Alphabet shares are shares of a publicly traded company that have different classes of shares, commonly referred to as “.A shares” or “.B shares”.

• Anti-dilution clauses are clauses built into convertible preferred shares to help protect investors from their investments that could lose value.

• Par value is the price at which the bond was issued, also known as its face value.

• BAT stock is an acronym used to refer to China’s top three technology companies: Baidu Inc., Alibaba Holding Group Ltd. and Tencent Holdings Ltd.

• A backstop is the act of providing extreme assistance or security in an offering of securities to an unsubscribed portion of the shares.

• The basic materials sector consists of companies involved in the exploration, development and processing of raw materials.