Access to the capital market represents lower financing costs for corporations as compared to traditional bank financing. Corporatiosn may publicly offer their equity or debt securities directly to personal investors, thus avoiding intermediation costs. Such financial advantage is balanced by the strict authorisation and information requirements applicable to issuers willing to offer their securities publicly.

Except as provided by the abridged application procedure described below, the first step is to obtain the approval from the CNV for admission to public offering. If securities are to listed on the BCBA, a second approval from this institution is required. Finally, certain ongoing information requirements are applicable to companies who make a public offering of securities.

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