Common Equity Securities Offerings Flowcharts


Summary

These flowcharts illustrate how common types of securities offerings generally proceed. There are a number of methods available for issuers to offer and sell their securities to investors in the capital markets. Regardless of the method chosen, issuers must comply with Section 5 (15 U.S.C.S. § 77e) of the Securities Act of 1933, as amended (Securities Act), which requires that offerings and sales of securities be registered under the Securities Act, unless an exemption from such registration applies. After the initial decision regarding registration versus exemption, each offering travels its own path, involving many decisions, processes, and individuals, some of which are the same from offering to offering. In addition, after the initial sale of the securities, subsequent resales by the investor must also comply with Section 5 through either registration of the securities to be resold or the availability of a further exemption.