Flotation
Flotation refers to the process of a private company offering shares to the public for the first time, typically through an IPO. This allows companies to raise capital from public investors and expand their financial base. Flotation is a significant milestone, providing liquidity to early investors and enabling the company to pursue growth strategies. However, it also subjects the firm to public scrutiny and regulatory requirements.
Key Takeaways
- Process of offering shares to the public via IPO.
- Raises capital from public markets.
- Provides liquidity to early investors.
- Subjects the company to public scrutiny and regulatory oversight.