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IPOs and the secondary market

Corporation do not necessarily have to be listed on the exchange. The shares can also be held by a small group of people (for example a family). This is described as a privately-owned public limited company. A public limited company lists on the stock exchange by "going public" and thereby becomes a listed company.

Rights Description
IPO When a company lists on the stock exchange this is known as an Initial Public Offering (IPO). A private company whose share capital was previously closely owned becomes a listed company by listing on the stock exchange. The initial public offering is usually conducted by one or more investment banks.
Secondary trading The secondary market is the market for trading in securities on the stock exchange. Most share trading is carried out on the secondary market. Primary trading relates to the period before the issue of shares.
Free Float The free float refers to the proportion of a company's total number of shares in issue which are not owned by long-term investors (e.g. the founders, management and institutional investors). The free float is tradable on the stock exchange at any time. Small shares held by private investors are counted as part of the free float even though in theory they can also be held for the long term. For example, a minimum free float of 20% is required for a company to be listed on the main segment of the SIX Swiss Exchange. Blue chips often have a much higher free float.
Greenshoe If demand for equities in an Initial Public Offering (IPO) is so strong that not all applicants receive an allocation, a greenshoe may be used. If demand is significantly greater than the planned issue volume (number of shares issued), for example a free float of 51% of the shares, the issuer can, if permitted by the issue prospectus, issue additional shares of for example 2% on the original terms, so that ultimately 53% of the shares are tradable on the stock exchange.