• Jhex@lemmy.world
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    11 hours ago

    how can you file confidentially for a public offering?

    that’s like throwing a public party where you are expecting to make money of the cover charge but not telling anyone about it

    • ohulancutash@feddit.uk
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      1 hour ago

      First an IPO has to get SEC approval. A confidential filing means they send the information to the SEC without it being generally available. The public prospectus follows after approvals are given.

      • w3dd1e@lemmy.zip
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        3 hours ago

        But don’t the public investors need that info to decide? Like a prospectus?

        I don’t know that much about IPOs. I’m just assuming.

        • ohulancutash@feddit.uk
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          1 hour ago

          First the SEC and other authorities need to vet the offering. By filing confidentiality this initial stage is kept from competitors.

          It means that instead of filing publicly 90-120 days ahead, they can hold off public prospectus to 21 days ahead of launch.