There are primarily 6 transaction that occur in capital market between various participants.
- Initial Public Offer (IPO) – first time that a company issues securities to the public
- Follow-on Offering – go back to the public market to raise more fund
- Private Placement – raise money privately
- Mergers & Acquisitions – companies buy other businesses
- Leverage Buyout (LBO) – form of acquisition where a company uses a lot of leverage to use the minimum amount of equity possible to buy a business
- Divestiture – a company sells its business
