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 If each share is worth $2,000, you can determine how many shares you need to issue by simply dividing the amount of capital ($100,000) by the value per share ($2,000). 2  In this case, you would need to issue 50 shares to provide you with the amount of capital you need.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.