Legal Definitions - securities-offering distribution

Definition: Securities-offering distribution refers to the process of an issuer publicly offering securities through an underwriting agreement with a broker-dealer or on an informal basis, with or without brokers.

Examples:

• Controlled-securities-offering distribution: An issuer enters into a formal underwriting agreement with a broker-dealer to sell a certain number of shares of its stock to the public.
• Uncontrolled-securities-offering distribution: An issuer offers securities to the public without a formal underwriting agreement, such as through a crowdfunding campaign.

These examples illustrate how an issuer can distribute securities to the public through different methods, either with the help of a broker-dealer or on their own. This process allows the issuer to raise capital by selling ownership stakes in the company to investors.