This is an additional way of raising unsecured business capital for existing and startup business projects. The concept of this avenue is through sales of company’s certain amount of shares on various stock exchange platforms by advertising the business concept uniqueness and its special necessity in the market place. Once stock exchange participants will get convinced by the advertising of the unique business concept, they will start purchasing the shares of the business and by doing so the businesses are capable of raising capital through stock exchange platform.
There are three ways to enter the stock exchange and trading environment
IPO – Initial Public Offering
Through listing the company from the scratch, obtaining all the permits and licensing in order to be able to legally offering the company shares. Cost close to 1 million dollar and it will take 10 to 12 months. Such a process called IPO (Initial Public Offering).
RTO – Reverse Takeover Offering
The company is entering the stock exchange platform through a shell company which is already listed.
The company then purchases the shares of the shell company thus itself becomes the owner of the publicly traded company.
CTO – Cooperate Takeover Offering
This when the company has a unique proposition for the public interest but the company does not have the sufficient funds to purchase trading shell company shares so this is a publicly traded company that is completely taking over the non-public company in order to be able to offer shares for the new business opportunity on a publicly traded platform.