Underwriters manage a company's initial public offering from registration to public sale.
Whenever a company makes the decision to go public, its first task is to select the underwriters. They prepare a registration statement for the approval of the Securities and Exchange Commission (SEC). In addition to registering the issue with the SEC, they need to check that the issue complies with the blue-sky laws of each state. While the registration statement is awaiting approval, underwriters begin to firm up the issue price. They arrange a road show to talk to potential investors. Immediately after they receive clearance from the SEC, underwriters fix the issue price. After that they enter into a firm commitment to buy the stock and then offer it to the public.
| Activity | Actor |
|---|---|
| Select Underwriters | Company |
| Prepare Registration | Underwriters |
| Check Blue-Sky Laws | Underwriters |
| Arrange Road Show | Underwriters |
| Fix Issue Price | Underwriters |
| Offer to Public | Underwriters |