TYPES OF PUBLIC OFFERING (DIRECT PUBLIC OFFERING AND INITIAL PUBLIC OFFERING)

 DPO

DIRECT PUBLIC OFFERING

The company is not required to use underwriters. 

Saves money for not using underwriters.

Investment banks and financial institutions that act as underwriters may be costly, they help ensure that federal regulations are followed. It chooses to raise cash through a DPO,its corporate team is responsible for making sure federal regulations are followed

IPO

INITIAL PUBLIC OFFERING

The company uses services of intermediaries called underwriters.

Have to pay fees for Underwriters. Regulated & stable because the underwriter buys the shares, the company gets the cash immediately upon completion of contracts. This allows the company to put that money to work much more quickly.while the underwriter worries about selling the shares.