IPO


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IPO

Initial Public Offering

The first price for which a company offers to sell stock in itself when it moves from private ownership to public trade. More generally, it refers to the actual first sale of stock to the public. Small companies looking for a new source of financing offer most IPOs, but large companies who wish to be publicly traded can offer them as well. An IPO is generally a risky investment, because one does not know how much demand will exist for the stock after its initial offering; the risk comes from the uncertainty about the stock's resale value. See also: Publicly-traded company.

IPO

Initial public offering (IPO).

When a company reaches a certain stage in its growth, it may decide to issue stock, or go public, with an initial public offering (IPO). The goal may be to raise capital, to provide liquidity for the existing shareholders, or a number of other reasons.

Any company planning an IPO must register its offering with the Securities and Exchange Commission (SEC).

In most cases, the company works with an investment bank, which underwrites the offering. That means marketing the shares being offered to the public at a set price with the expectation of making a profit.

IPO

see INITIAL PUBLIC OFFERING.
References in periodicals archive ?
Q2 2015 also saw the first MENA outbound IPOs since the listing of Gulf Marine Services on the London Stock Exchange (LSE) in Q1 2014.
Financial sponsors and venture capital companies remained active in the second quarter of 2015, backing 65 percent of IPO volume and 62 percent of IPO value, collectively.
In the second half of 2014 we expect the Mena IPO market to remain buoyant with the fundamentals in place for a sustained period of strong and steady IPO activity.
GCC IPOs represented 90 per cent of all Mena IPOs in the first half, with 10 GCC IPOs raising $2.
Stock market sources said they expect the number of IPOs in Japan this year to fall to about 100 from last year's 121 due to declines in markets for emerging firms, although major companies like Mitsui Life Insurance Co.
Tokyo, Japan, Sept 7, 2007 - (JCN Newswire) - There were 12 IPOs in August compared with 11 one year ago.
The largest worldwide IPO in 2003 was China Life which raised $3.
In a succeeding panel, Timothy Draper, founder of Draper Fisher Jurvetson, a venture capital firm, noted that VC firms tend to see IPOs as a beginning and not an end, adding, "We're often the last ones to sell.
Also, they are a growing number of big investment banks who've allied with discount brokers to give their customers an opportunity to buy shares in select IPOs.
Estimating a company's value begins well in advance of the IPO date.
Like Dollar Tree, he considered an IPO, but the company was only five years old with $50 million in sales, and the hassles of being public including keeping one eye always on the stock price weren't commensurate with where the company was in terms of development.
Visa priced above its expected range in March 2008, becoming the largest IPO ever for a U.