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 ?
Worldwide Initial Public Offerings in the Life Sciences Industry (2004 through the first 9 months of 2006)
The option is exercisable, in whole or in part, for a period of 30 days following the closing of the initial public offering, to cover over-allotments, if any.
OTCBB:ZNCM) today announced that a registration statement has been filed with the Securities and Exchange Commission for an initial public offering of shares of common stock of its wholly owned, third-party logistics subsidiary, Universal Power Group, Inc.
NEW YORK -- Infineon Technologies AG and Qimonda AG, together with the lead underwriters, fixed in New York today the initial public offering price and the issue size of Qimonda's initial public offering (IPO).
the "Company") (AMEX:BTC-U) announced today that it consummated its initial public offering of 7,500,000 units on June 8, 2006.
OTTAWA, Canada -- Corel Corporation (NASDAQ:CREL)(TSX:CRE) today announced the closing of its initial public offering of 6,500,000 common shares at an initial public offering price of US $16.

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