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.
6 2 Investing How to buy and sell shares Where do shares come from in the first place? When a company first issues shares for sale, this is generally called a float or initial public offering (IPO). A company might float on the sharemarket as a way to raise money or to give existing owners an exit for their investment. 2 Investing How to buy and sell shares Where do shares come from in the first place? When a company first issues shares for sale, this is generally called a float or initial public offering (IPO). A company might float on the sharemarket as a way to raise money or to give existing owners an exit for their investment.