The parties involved in the issue of shares in the stock market include:
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Corporations: When establishing a corporation, owners may choose to issue stock to raise capital. Companies then divide their stock into shares, which are sold to investors.
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Investment banks or brokers: These entities buy shares from corporations and sell them to other investors individually or through instruments like a mutual fund or exchange-traded fund.
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Investors: These are individuals or entities that buy shares of a company to own a portion of it and potentially earn a return on their investment.
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Insiders: These are individuals who work for the company and may receive shares as part of their compensation packages.
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Underwriters: These are entities that help corporations issue securities in the primary market, such as through an initial public offering (IPO) .
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Selling shareholders: These are individuals or entities that sell their shares of a company in the secondary market.
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Regulatory bodies: These are organizations that oversee the stock market and ensure that companies and investors follow rules and regulations. In the United States, the Securities and Exchange Commission (SEC) is the primary regulatory body.
Its important to note that authorized shares are the total amount a company can ever issue or sell, and issued shares are the portion of authorized shares that a company has sold or otherwise placed in the market, including shares they hold in their treasury.
