How it is worked out
The company files a registration statement (S-1, or F-1 for a foreign company) with its statements, its risks and what it will do with the money. Once the price is set, it files the final prospectus (424B4) and the share starts to trade. On the stocks hub, who filed and who priced come from EDGAR's daily index of filings.
How to read it
- An S-1 does not mean the listing will happen: many are delayed or withdrawn.
- A new company has few years of figures, so measures such as five-year growth do not exist yet.
- Blank-check companies (SPACs) list with no business of their own, to buy another later, and are marked apart.
Example
A company files an S-1 in March, sets its price at $20 in June with the 424B4, and its shares trade from the next day.