1 Once upon a time, when you bought broccoli you bought the whole vegetable, stems and crowns. Then it became customary for grocery store produce departments to separate the crowns from the stems and to sell the crowns at a premium. 2  Iâm not a fan of this practice, because I like both parts of the broccoli plant.
A company's first issue of common stock to the public is called an Initial Public Offering. Afterwards, a corporation may issue new equity at any time in order to finance its growth. When new common shares are offered to existing shareholders first, this is called a rights offering.
1 Issuing shares involves determining how much capital you need, and then determining an appropriate amount of shares to issue in order to raise that capital. 2  If you need $5,000 initially for example, and decide to issue 5 shares to yourself, each share would be worth $1,000 each.or example, say you own a delivery business, and decide you need to add 5 new trucks to your fleet, at $20,000 per truck. You will then require $100,000 of capital. 1  This amount will ultimately guide the entire process of issuing stock, as it will help you determine how many shares to issue and at what price per share.