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Trading Your Company on the NYSE and NASDAQ
1. Hire an investment bank to handle all of the details for the IPO. Find one that you feel comfortable with. Some examples of investment banks are Goldman Sachs, Merrill Lynch, CitiGroup and JP Morgan. These banks are the ones that distribute the stock for the company so that you don't have to.
2. Meet with the investment bank and determine the type of security you're going to offer. In this case, it is stock. During the meeting, what the bank is going to offer are one of two scenarios. The first is a firm commitment which means that they will guarantee the sale of a certain amount of stocks. The second scenario is a best-efforts agreement. This means that the bank will do the best they can to sell stocks of your company, but make no guarantee.
3. Submit a registration to the Securities and Exchange Commission (SEC) through your investment bank. This document provides information on management information, financial holdings, insider holdings, legal issues and what the money is going to be used for to further your business. On top of that, express which stock market you want your stock to appear. That means, pick NASDAQ or NYSE.
4. Begin courting prospective investors while the SEC is going through your application. While you don't have a release date yet, you can explain the type of company you are and explain why your stock is going to go up. The more people you get on board to invest in your company when the IPO goes public, the more successful you'll be.
5. Meet with the investment bank and determine how much you're going to charge per share. This becomes an issue because instinct says to have it high, but if it is too high, no one will buy. The investment bank will be able to determine what is a good price based on your earnings.
6. Watch as the price fluctuates on the release date. As shares are sold, the money will be transferred to your company so that you can further expand your business and make more money thus making the business more successful.