If stock is to be sold to raise new capital, the new shares may be sold in one of five ways:

 (a) On a pro-rata basis to existing shareholders through a rights issue

(b) Through investment bankers to the general public in a public issue

(c) To a single buyer (or a very small number of buyers) in a private placement

(d) To employees through an employee stock purchase plan

(e) Through a dividend reinvestment plan by a bonus issue