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 ?
has lent more than USD8bn since its initial public offering in 1996.
The company added that the initial public offering includes 804,000 shares of common stock issued upon the exercise in full by the underwriters of their option to purchase additional shares.
The initial public offering is priced between USD24 and USD27 per share.
"The process was substantially more costly and demanding than we had anticipated," said Carr, who successfully concluded an initial public offering last February.
(NASDAQ: RRBI), the holding company for Red River Bank, has said that it has closed its initial public offering of common stock at a public offering price of USD45.00 per share.
This BTI license allows the bank to provide a full range of Initial Public Offering services to its customers and the corporate sector in Pakistan.
Regulus Therapeutics Inc (NASDAQ: RGLS), a biopharmaceutical company involved in the discovery and development of innovative medicines that target microRNAs, yesterday announced the pricing of its initial public offering of 11.25m shares of its common stock.
GasLog Ltd, an international owner, operator and manager of LNG carriers, has started an initial public offering of 23,500,000 common shares.
The Taubman REIT, which at $295 million is the largest initial public offering of an equity REIT, is leading the way for a number of REITs pending for 1993 which are expected to raise amounts approaching or exceeding $200 million each.
Global Banking News-May 9, 2019--Red River Bancshares closes initial public offering
BANKING AND CREDIT NEWS-January 21, 2019--Medallion Financial postpones initial public offering of preferred stock by Medallion Bank

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