Initial Public Offering - Definition

The video tutorial explains the process of making securities available to the public, highlighting the need for registration with the Securities and Exchange Commission (SEC) and the role of underwriters. It details the underwriting process, which involves investment banks creating awareness and selling securities to institutional investors. The tutorial also covers the registration process, which requires filing documents with the SEC and meeting disclosure requirements. Companies can sell securities directly to the public, but smaller companies often bypass underwriters. The registration process is costly and time-consuming, requiring professional assistance to ensure compliance.

Explain the importance of disclosure documents in the registration process.

What restrictions exist on selling or soliciting buyers of securities before the registration process is complete?