A General Public Distribution is the process of selling privately held shares to public stockholders for the first time. It is an easy way for a private company to achieve its goal of going public by utilizing what is called a reverse merger.Typically, when a company buys back its own stock, it does not disclose what percentage of its shares are owned by insiders. The Special Committee decides whether this information should be disclosed to investors in the annual proxy statement.A public distribution (also known as “public offering” or “direct listing”) is the process of selling privately held shares to public stockholders for the first time. Through a general public distribution, companies publish sales documents, conduct an initial public offering (IPO), and subsequently begin trading on a stock exchange. In contrast to an initial public offering (IPO) where stocks are sold only to investors who are accredited with either $1 million or $200,000+, a general public distribution makes them available to everybody.When you buy stock in a private company, it's relatively easy to be confident that the stock will go up over the long term. That's because when it comes to public companies, "Go public" has meant that there has been a significant amount of turnover and profitability. To say it another way, with so many new investors in the marketplace, the average life span of a company founder is much shorter than with private companies just getting started.
