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Investments glossary

Flotation


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Quotes of the day:

Doctors pour drugs of which they know little, to cure diseases of which they know less, into patients of whom they know nothing.

— Moliere

Flotation is the process of converting a private company into a public company by issuing shares available for the public to purchase. It allows companies to obtain financing externally instead of using retained earnings to fund new projects or expansion. The term flotation is commonly used in the United Kingdom, whereas the term going public is more widely used in the United States.


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