initial public offering

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Initial public offering (IPO)

A company's first sale of stock to the public. Securities offered in an IPO are often, but not always, those of young, small companies seeking outside equity capital and a public market for their stock. Investors purchasing stock in IPOs generally must be prepared to accept considerable risks for the possibility of large gains. IPOs by investment companies (closed-end funds) usually include underwriting fees that represent a load to buyers.

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.

initial public offering (IPO)

A company's first sale of stock to the public. Securities offered in an IPO are often but not always those of young, small companies seeking outside equity capital and a public market for their stock. Investors purchasing stock in IPOs generally assume very large risks for the possibility of large gains. See also pre-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.

initial public offering (IPO)

the first public sale of shares in a firm having newly obtained a STOCK MARKET listing.

initial public offering (IPO)

the first sale of the SHARES/STOCK to investors in a firm that has newly obtained a STOCK EXCHANGE listing. Mostly, IPOs involve previously private firms converting to public limited company (plc) status. IPOs are undertaken to release capital for the original owners of the business and to provide additional finance to fund the expansion of the business. See SHARE ISSUE, JOINT-STOCK COMPANY.
References in periodicals archive ?
The closing of all these transactions is subject to approval of the TSX Venture Exchange and satisfaction of customary closing conditions, as well as the closing of the Company's proposed public stock offering by June 30, 2013.
In late May, Maytag announced its intention to pursue an initial public stock offering of its operations in Australia and New Zealand.
As the chief financial officer, he represented the company in its initial public stock offering in 1992.
Lotan said MRV will pay for Xyplex with part of the funds raised by September's public stock offering of 2.
Interest expense increased in 1993 due to a write-off of $32,000 of deferred loan costs related to the pay-off of all bank debt subsequent to the public stock offering.
Kansas City-based Block spun off 20 percent of CompuServe in an April 18 public stock offering, saying it wanted to concentrate on its core tax preparation businesses.
Access National Corporation ("Access National" or the "Company") (NASDAQ:ANCX) today announced that the underwriters of its recently completed public stock offering have exercised and closed on their option to purchase an additional 320,250 shares of the Company's common stock to cover over-allotments at a public offering price of $9.
8 /PRNewswire/ -- Aetrium Incorporated (NASDAQ: ATRM) announced today that underwriters for its initial public stock offering are exercising their option for an over-allotment of 225,000 shares.
The public stock offering facilitated the listing of the company's common stock on the New York Stock Exchange under the symbol XEL.
A public stock offering of approximately 15 percent interest in the new subsidiary is planned for 1993, depending on market conditions.
DENVER -- Imagine Holding Corp announced today the completion of its initial public stock offering.
Allen announced today that the underwriters of LADD's recent public stock offering have exercised their overallotment option and purchased an additional 525,000 shares of LADD common stock from the company.