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 ?
Investigating the differences in initial returns and price revisions between second-time and first-time issuers, Dunbar and Foerster (2008) present evidence that prior withdrawal is a priced risk factor for second-time issuers that have withdrawn their previous IPO filing.
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.
The November 13 IPO by Ubiquitous is the month's most noteworthy issue.
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.
For a free trial of the IPO Express email alert service, go to http://www.
In the past, a company had to show profits and reasonable revenue growth to do an IPO," Kaplan notes.
The current state of the IPO market should come as no shock.
The number of IPO focused funds in the Mena could be on the rise with more IPOs set to enter Mena markets in the next two years, which could bring in greater investment and IPO opportunities.
If properly executed, an IPO fund strategy can yield high returns, well above the average.
Three August IPOs had particularly high opening price premiums: Full Speed (63%), Dear Life (71%) and the very popular August 8 IPO of China Boqi Environmental Solutions (73%).