ABSTRACT
There are two reasons why a company might choose to fl oat its shares on a recognized stock exchange – cash-in and cash-out. A cash-in fl oat is done by growth companies which seek funding; in a cash-out fl oat existing shareholders take the opportunity to sell their shares, and the company does not necessarily raise further fi nance. It is important that the company makes its strategy clear to the fi nancial markets, as the exercise of fl otation is as much about presentation and marketing as it is about fi nancial strategy.
