Flotation
Flotation refers to the debut on the stockmarket for a public company . In other words, the first occasion on which its shares are offered widely to investors on the market.
Flotations are often referred to as new issues although it is possible for companies already in the stockmarket to issue new shares.
Investors considering putting money into a company that's joining the market for the first time need to study the prospectus , which forms part of the offer for sale .
The prospectus is compiled by the firm's advisers and is designed to explain the background to the business and promote it by reference to its future prospects. In recent years, a number of offers for sale have been launched by the Treasury to raise funds for the public purse through large privatisations.