Searching for the effective strategy of marketing shares and stock can be a challenge. There are many ways used. You should know details regarding each method before you choose any.
Marketing shares and stock of any company can be a challenge. It might be difficult to get the entire required amount subscribed by the public. It entails you to be careful when selecting the strategy to use. Investors have different considerations when it comes to investing their savings.
Eight Strategies of Marketing Shares and Stock
1. Through the Prospectus
This is the commonly used technique. A prospectus is a notice,
circular, advertisement or any other document inviting offers from the public for the subscription of shares and debentures. The prospectus contains details about; the amount to be issued, the rights pertaining to the various shares, the properties purchased by the company, details of directors and managing directors, the minimum amount of subscription to be received before the company starts business etc.
In this strategy, you invite the public to subscribe the shares and debentures. The interested public is allotted specific number of share and debentures.
2. Public Placement
It is an arrangement which you make with the issuing house, brokers or underwriters who agree to purchase debentures and place them with their clients. In private placement, money is advanced by bulk buyers of securities. This strategy is mainly used to market debentures.
3. Sale through Stock Exchange
You can involve the brokers who operate in the stock exchange to market shares and stock. If the shares are listed in the stock exchange market, then the public confidence is gained. Stock exchange widens the market.
4. Sale to the Employees
You can sell the debentures and shares to interested employees. The employees are advantaged since the interests and dividends earned from the shares and debentures supplement their primary income. Debentures and shares under this strategy are usually sold at a concessional rate.
5. Sale to the Existing Shareholders
You can use this strategy and it’s whereby the sale of shares and debentures are sold to the existing shareholders at a concessional rate. This method is also known as privileged subscription as it gives first priority to the existing shareholders to purchase additional shares and debentures.
6. Sale of Securities to Customers
In this method, you sell the shares and stock to your customers. It is a less costly method to use and it does not entail much speculations.
7. Sale through Managing Brokers
If you use this method, then you’re provided useful services. Under this method, you are advised in matters regarding to the terms and time of issuing shares and stock so as to avoid contradictions with other important issues. You are advised on the stock exchange listings. The managing brokers prepare the prospectus for you.
8. Marketing through Underwriters
This method overcomes the limitations of direct sale through intermediaries. In this method, there is an agreement whereby underwriters undertakes to guarantee the whole or such part of the issued shares as would not be taken up by the public, in return for an agreed commission.
