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 ?
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.
No one knows how many other companies headed by women might be in the pipeline because it often takes three to five years of venture capital financing before a company is ready to hold a 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.
DENVER -- Imagine Holding Corp announced today the completion of its initial public stock offering.
Legacy Bancorp has also completed its related public stock offering.
In exchange for Cathy Hughes and family reducing its ownership of Radio One to below 51% in a series of public stock offerings, the company expanded its ownership to 65 stations.
Equity financing through public stock offerings is now one of the few ways to raise funds to cover capital costs.
THE SECURITIES AND EXCHANGE Commission adopted new rules to make it easier and less expensive for small businesses to raise capital through public stock offerings.
The guilty plea closes a chapter on a scandal that captivated the fashion industry since Madden was arrested last June in connection with reaping the benefits of manipulating 23 initial public stock offerings underwritten by the now-defunct companies Stratton Oakmont Inc.
Nearly every facet of the industry had record breaking years from initial public stock offerings of Internet firms that soared 400 percent in a day, to mergers and acquisitions, to the brokerage and stock trading arms.
Buness has over 25 years of experience in senior financial executive roles in high-growth, small market-cap public and private technology companies, including expertise in venture capital, public stock offerings, and mergers and acquisitions.