Initial Public Offering with and Without Rights (Report‪)‬

1. INTRODUCTION To reach the standards desired and sought by investors Romanian capital market has to fulfil more conditions. Thus, in order to fulfil his role as a company financer, and in order to reflect the Romanian economy, Bucharest Stock Exchange must grow. But, to achieve this, at least one technical obstacle must be passed: having a larger number of listed companies. This is why the number of IPO-s must grow. Stock listing has undoubtful advantages: the attract of money from the capital market, the increasing of the social capital, the low costs of stock exchange financing, companies are not requested warranties (so the company may settle its own financing criteria, as compared to banks which generally offer standard products), the existence of a recognized market value, the free publicity in the country and abroad (Grecu, 2008).