The company’ selected sale of shares is a relatively inexpensive way compared to other methods, this means that the sale of shares are not made to all the investors but the selected investors. Under this method, there is a broker, and the commission has to be passed to the broker, who then sells the securities to its client base. It is a good way because it costs cheap at the time of obtaining convenience.

 

Introductions

This is actually not a cash-raising exercise, but merely brings the share already held by shareholders into the market. For example, the stock was previously issued in other markets, and now the company wants to issue in another market, this method can be used. But as just mentioned, no cash has been generated in the procedures, so if the company wants to obtain more capital to expand its business, other methods instead of this one should be used.

  Offer for Subscription

This is where the company issues new shares directly to the public. This means that there is no intermediary or agent that can assist the issuing work and company will an issue by itself.

So if the capital not enough, the subscription will be stopped, this ways are difficult.

But this method is not popular, because the company has to run issuing procedures by itself,and has to spend precious management time to do these things.and if the company has no professional staff that can dead with the procedures, it will fail.

Offer for Sale

The company chooses a "representative" to help it to issue the shares to the public, and the representative is called the issuing house or agent. This represents will handle all kinds of trivia, such as processing and distribution of shares. And after deducting the fees paid to the intermediary, the remaining capital raised will be passed to the company.