How does a company sell its shares to the public for the first time? Explain the contents of a registration statement

What will be an ideal response?

The issuance of securities by an issuer is called an initial public offering (IPO). A business or party selling securities to the public is called an issuer. An issuer may be a new company that is selling securities to the public for the first time. This is referred to as "going public." Or the issuer may be an established company that sells a new security to the public. Many issuers of securities employ investment bankers, which are independent securities companies, to sell their securities to the public. A registration statement must contain descriptions of (a) the securities being offered for sale; (b) the registrant's business; (c) the management of the registrant, including compensation, stock options and benefits, and material transactions with the registrant; (d) pending litigation; (e) how the proceeds from the offering will be used; (f) government regulation; (g) the degree of competition in the industry; and (h) any special risk factors.