Emission includes several mandatory stages: adoption of an issuance decision by an authorized body of the company, approval of the decision, state registration of the issue, placement of securities among purchasers, and reporting on results.
Issue registration is a key element of investor protection. It confirms that the documents meet requirements and information about the issuer is disclosed to the established extent. Offers to purchase unregistered securities should be considered as increased risk regardless of stated terms.
There are primary emissions when establishing a company and secondary emissions conducted later to raise funds. Secondary stock emission increases charter capital and, without participation of existing shareholders, leads to dilution of their stakes.
Placement is conducted through open or closed subscription. A separate case is the issuance of securities under securitization, where the issuer is a specially created entity and the collateral is a separate asset portfolio.