Pecking order for Company’s securities holders:  ( In Case of Liquidation)

Creditors

Bond holders

Preferred Stock holders

Common Stock holders – at the bottom

Share holders rights:

              Voting power on major issues

              Ownership in portion of company

              Freely transferrable

              Entitled to dividends paid to common stock holders

              Might include Shareholder rights plans that can prevent hostile takeovers

 

IPO process:   https://corporatefinanceinstitute.com/resources/equities/ipo-process/

Largest private company in the US -Cargill

For 2021, revenues at Minnesota-based Cargill hit a record high of $165 billion. Koch earned its second place spot with $120 billion in revenues.

 

No minimum amount of shares or market cap that serves as threshold for going public, but costs associated with on-going reports and investor relations, etc. usually will serve as hurdle point. Up to 10 million dollars for ipos over 100mm

 

The difference in the way public markets value companies vs. private companies.

 

FLOATS and INSIDERS:

https://www.investopedia.com/terms/o/outstandingshares.asp

 

Why would insiders want to hold back a large amount of shares for themselves?