Sure Fire Methods Of Marketing Securities

Marketing of securities such as shares and debentures of any company or even your own company can be a challenge. It might be difficult to get the entire required amount subscribed by the public. It entails you to be careful when selecting the strategy to use to market the debentures and shares. Investors have different considerations when it comes to investing their savings.As a marketer you should be able to read their preferences and requirements and cater them exactly the way they want them.

Here are the methods you should apply when selling securities:

Through the Prospectus-This is the commonly used technique. So, what is a prospectus before a go into details? A prospectus is a notice, circular, advertisement or any other document inviting offers from the public for the subscription of shares and debentures. The prospectus will contain details about; the amount to be issued, the rights pertaining to the various shares, the properties purchased by the company, details of directors and managing directors, the minimum amount of subscription to be received before the company starts business and other essential details.
In this method, you will invite the public to subscribe to the shares and debentures. The interested public will be allotted specific number of share and debentures.

Public Placement-It's an arrangement which you make with the issuing house, brokers or underwriters who will agree to purchase debentures and place them with their clients. In private placement, money will be advanced by bulk buyers of securities. This method is mainly used to market debentures. It's cost effective because the amount of commissions and legal expense are low.

Sale through Stock Exchange-You can involve the brokers who operate in the stock exchange to market shares. If the shares are listed in the stock exchange market, then the public confidence is gained. Stock exchange widens the market

Sale to the Employees-You can sell the debentures and shares to the interested employees of that company. The employees will be advantaged since the interests and dividends earned from the shares and debentures will supplement their primary income. Debentures and shares under this method are usually sold at a concessional rate so that the employees are motivated to buy them.

Sale to the Existing Shareholders-You can use this method and its where by the sale of shares and debentures are sold to the existing shareholders at a concessional rate. This method is also known as privileged subscription as it gives first priority to the existing shareholders to purchase additional shares and debentures.

Sale of Securities to Customers-In this method, you will sell the shares and securities to your customers. It's a less costly method to use and it does not entail much speculations.

Sale through Managing Brokers-If you use this method, you will be provided useful services. Under this method, you will be advised in matters regarding to the terms and time of issuing securities so as to avoid contradictions with other important issues. You will also be advised on the stock exchange listings. The managing brokers will prepare the prospectus for you.

Marketing Through Underwriters-This method overcomes the limitations of direct sale through intermediaries. In this method, there is an agreement whereby underwriters undertakes to guarantee the whole or such part of the issued shares as would not be taken up by the public, in return for an agreed commission.The underwriters will then sell those shares and debentures to the interested public .

There are different types of underwriting and they are:

Standing behind the issue underwriting.

Outright purchase underwriting.

Firm underwriting.

Syndicated Underwriting