There are primarily 6 transaction that occur in capital market between various participants.

  1. Initial Public Offer (IPO) – first time that a company issues securities to the public
  2. Follow-on Offering – go back to the public market to raise more fund
  3. Private Placement – raise money privately
  4. Mergers & Acquisitions – companies buy other businesses
  5. 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
  6. Divestiture – a company sells its business