Offering of new securities to the public without the assistance of an investment banking firm.
A public offering in which shares are sold directly to investors, rather than through an underwriter.
a form of disintermediation because there is no underwriter
an equity offering in which the company shares of stock are sold directly to investors, rather that through an underwriter
an initial public offering a company in which the stock is purchased directly from the company, usually without the aide of brokers
an offering conducted without the help of an underwriter
offering in which a company sells its shares directly to the public without the help of underwriters..
To avoid the expense of high-priced lawyers and investment bankers, some companies try to go it alone by selling their shares directly to the public. This has been used by small consumer products companies with loyal customers. These offerings are usually extremely small and highly illiquid.
A Direct Public Offering can sell it's stock directly to the public (typically over the Internet), without the filing registration and reporting requirements of IPO's. DPO offerings range from up to $1 million, to $25 million. Each offering has different requirements, restrictions and limitations.
This is when a company bypasses an underwriter and goes public on its own.
A direct public offering occurs when a company sells its shares directly to the public without the assistance of an underwriter. The company is still required to file a registration statement with the SEC; however, the legal and accounting costs are substantially lower than those of an initial public offering due to the absence of underwriting fees. The company can legally advertise its stock directly to the public through the Internet or off-line media. These offerings are usually small and trading in these securities is typically highly illiquid, which means that an investor's ability to sell shares can be very limited due to the small number of willing buyers and sellers of the securities.
A company seeks a direct public offering (DPO) by raises capital by marketing its shares directly to its own customers, employees, suppliers, distributors and friends in the community. DPOs are an alternative to underwritten public offerings by securities broker-dealer firms where a company's shares are sold to the broker's customers and prospects.