The initial public offering (IPO) process includes a long list of responsibilities, and filing several disclosure forms is among the most important. Determining which documents to provide and assembling the information can take a significant amount of time. Among the disclosure forms that corporations must file is SEC Form 424. This form provides information about the offering for investors to review and use to decide whether to buy shares.

Broadly, investors are divided into two categories: retail and institutional. Retail investors are typically single investors making their own decisions, while institutional investors make investment decisions on behalf of a larger group. When smaller investors put money into an institution, they need to know where that money goes and its overall performance. To increase transparency in the management of institutional investments, the U.S. Securities and Exchange Commission requires certain filings, including SEC Form 13F.

What Is SEC Form 25? 

Once companies register securities on the public exchanges, whether voluntarily or due to Section 12(g) of the Securities Exchange Act of 1934, they must meet regular requirements to keep their securities available on those exchanges. Over time, business administrators may decide that it is not in the company’s interest to maintain the listing. In this case, they could request that their securities be delisted and deregistered from centralized exchanges. 

When funds register securities, they have to specify how many shares they plan to create. But what if they don’t have a specific number to sell? What if they want to keep the fund open-ended, so investors can purchase new shares over time? After the initial registration statement, open-ended funds need a way to acknowledge and pay fees for shares they sell in subsequent years. They can achieve this goal by filing SEC Form 24f-2.

The process for managing the shares owned by a company or fund is complicated, calling for a trained and registered professional to handle the work. The financial experts who handle these issues are known as transfer agents. In order to become a transfer agent, organizations must apply to the SEC (or their primary banking regulator) using Form TA-1. This form provides the necessary information for the regulator to process the registration and place the organization on record as a transfer agent. 

A hostile takeover is one of the most dramatic events in corporate takeovers, often capturing headlines and shaking investor confidence. So, what is a hostile takeover, and how does it differ from a friendly acquisition?

A hostile takeover occurs when an acquiring company seeks to gain control of a target company despite opposition from the target company’s management and board of directors. Instead of negotiating with leadership, the acquirer appeals directly to shareholders, often through tender offers or proxy fights.

Corporate consolidation is the process by which two or more companies combine to form a single, unified entity. Unlike simple acquisitions where one company absorbs another, corporate consolidation typically implies a more integrated, strategic merger of equals. This process can result in a new company or the absorption of entities into one pre-existing corporation, depending on the structure.