What is the process of creating shares?

The process of creating shares involves transforming a private company into a public one, allowing it to raise capital by selling parts of itself to the public. Here's a simplified breakdown based on insights from Tom Bilyeu and Wallstreet Trapper on Impact Theory:

1. Understanding the Need: A business either needs capital to scale or wants to unlock the value trapped in its equity. This necessitates creating shares 1.

2. Creating Shares: This involves "breaking down" the company into pieces in the form of shares that can be sold to public investors. The technical term for this is going public or an Initial Public Offering (IPO) 2.

3. Selling the Shares: Once the shares are created, they can be sold to the public. This can result in raising a significant amount of money either for the company (through selling treasury shares) or the individual owners (through selling personal shares). This process helps turn theoretical paper wealth into actual capital that can be used for various needs 1.

4. Public Participation: By going public, average individuals can buy shares and own a part of the company. This democratizes investment and allows the public to partake in the potential success of the company 1.

This process is complex and involves various regulatory and financial steps to ensure compliance and effective management of the newly public company.