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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

initial public offering (IPO)

the first public sale of shares in a firm having newly obtained a STOCK MARKET listing.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Bank holding company Hampton Roads Bankshares Inc (NASDAQ: HMPR), the holding company for Bank of Hampton Roads and Shore Bank, has withdrawn a proposed public stock offering.
$250 million-How much Digital Globe hopes to generate with an initial public stock offering. The Longmont company, which provides high-resolution commercial satellite imagery, was the only Colorado company in the IPO pipeline by the end of the third quarter.
US Airways Group Inc (NYSE: LCC) announced on 19 August the completion of its recent public stock offering.
The government will adopt several globally accepted investor protection measures in response to public stock offering plans by foreign entities that are incorporated as holding companies offshore in places such as Bermuda and Cayman islands.
In early 2006, the company's initial public stock offering was made to enable it to tap into sources beyond its own revenue stream to finance its investments in land, facilities and equipment that have allowed it to quickly become a major player on the global papermaking scene.
In October, Walter announced a plan to undertake an initial public stock offering and spin-off the Water Products business to unlock shareholder value by creating a "pure play" water infrastructure company.
Science Applications International Corp., the largest privately held defense contractor, plans an initial public stock offering early next year.
Perry Capital of New York had bought the assets of Republic out of bankruptcy in December 2003 and had restored the steel company to the point where it was planning an initial public stock offering. It was during the registration process that Industrias CH offered to buy Republic outright.
CF Industries Inc., a Long Grove, Ill.-based manufacturer and distributor of nitrogen and phosphate fertilizer products, plans to raise $700 million in an initial public stock offering. CF Industries is owned by eight farmer coops: CHS Inc., MFA Inc., Grow-mark Inc., Southern States Cooperative, Land O'Lakes, "Tennessee Farmers Cooperative, Intermountain Farmers Association and Cooperative Federee de Quebec.
The good news was that the Minnesota Department of Commerce has allowed the store to make a public stock offering, meaning that Minnesota residents can buy shares in the shop's stock at USD1 per share, with a minimum investment of USD250.
The new expansion is expected to eventually lead to a public stock offering.
1997: Becomes one of the underwriters of the $113 million initial public stock offering of shares in Prison Realty Trust Corporation, the real estate investment company of Corrections Corporation of America.