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Showing posts with the label #market

Why companies split stock?

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Why companies split stock?  Stock split or forward stock split is a corporate action where board of directors decides to issue more shares by dividing existing outstanding shares into multiple shares defined by the predetermined ratio. Most common ratios are 2 for 1 or 3 for one where investors for every share they own get two or three shares respectively. Likewise, price will be divided accordingly. If for example you originally owned 100 shares, each worth $15 in 2 for 2 split you will receive 200 shares each worth $7.5 and in situation where 3 for 1 split is done it will be 300 shares with $5 price per share. As you can see no real value is added and market capitalization is the same just like with reverse stock split. Companies do this for various reasons. Some stock price can reach astonishing level and company's official might want to lower the price to make it more appealing to small retail investors. Some argue that there is a psychological ef...

Regulation A VS IPO

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Regulation A VS IPO Even tough Reg A is an exemption from registration requirements like Reg D and Reg CF, Regulation A has more in common with IPO and it is often called a “mini IPO”. They are both open to all investors and securities offered can be traded and resold. advantages of Reg A is that it is more cost effective and more marketing friendly. Registration statement, known as 1A is similar to but simpler than S1 registration statement that is traditionally used for IPO. It requires just two years of audited financials and general level of disclosure is more streamlined. Preparation of 1A registration statement, attorneys and accountants costs and SEC review time are reduced. Also marketing of Reg A permits use of variety of media. SEC allows general solicitation and the goal is to find potential investors regardless if they have brokerage accounts with syndicate firms or not. To sum it up Reg A is saving time and money. MinaMarGroup.com InvestorRelations.mmg@gm...

Public relations

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                                           Public relations If you are hoping to get the word out there about your business, public relations is the answer.   Public relations has the power to reach a large audience, giving your business the platform it needs to really shine and allows you to attach credibility to your product or company.   With PR, it’s much easier to aim and fire on that target market you are hoping to reach. Media sources can place the information that is right up the consumers alley and give them the required information they need. If you are an accountant hoping to generate some new clientele, placing an ad in a teen magazine likely won’t help you. But a well written article smack dab in the middle of the finance section will probably lea...