Initial Public Offering - IPO

Initial Public Offering - IPO

The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded.

In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), the best offering price and the time to bring it to market.

Also referred to as a "public offering".

IPOs can be a risky investment. For the individual investor, it is tough to predict what the stock will do on its initial day of trading and in the near future because there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, which are subject to additional uncertainty regarding their future values.


Investment dictionary. . 2012.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • 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… …   Financial and business terms

  • Initial public offering — (IPO), also referred to simply as a public offering , is when a company issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large… …   Wikipedia

  • 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… …   Financial and business terms

  • Initial Public Offering — ( IPO) The term used in America for a new share issue by a company coming to the stock market for the first time. Financial Services Glossary Initial Public Offering ( IPO) Also known as flotation, it is the company s first offer of shares in the …   Financial and business terms

  • initial public offering — n. The first set of shares a new company sells on a public stock exchange, usually in an effort to raise money from investors in order to enlarge the company. abbrv. IPO The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks,… …   Law dictionary

  • Initial Public Offering — Introduction en Bourse Pour les articles homonymes, voir IPO. Une introduction en bourse (Initial Public Offering (IPO) en anglais) est une opération financière conduite par une société de bourse et par divers conseils (banquier d affaires,… …   Wikipédia en Français

  • IPO (initial public offering) — – первое публичное размещение акций нового выпуска неограниченному числу потенциальных инвесторов. В мировой практике IPO проводятся для того, чтобы акции компании продавались на бирже и она привлекала денежные средства на открытом рынке… …   Банковская энциклопедия

  • Forced Initial Public Offering - IPO — An instance in which a company is forced into issuing shares to the public for the first time. Forced IPOs occur when a company goes public due to certain conditions being met which are set by the securities regulatory body of the country.… …   Investment dictionary

  • Initial Public Offering — Unter einem Börsengang, engl. Initial Public Offering oder kurz IPO (früher auch „Going Public“ genannt) oder auch Primary Offering, versteht man das erstmalige Angebot der Aktien eines Unternehmens auf dem organisierten Kapitalmarkt. Die… …   Deutsch Wikipedia

  • initial public offering — noun a corporation s first offer to sell stock to the public • Syn: ↑IPO, ↑initial offering • Hypernyms: ↑commerce, ↑commercialism, ↑mercantilism * * * noun, pl ⋯ ings [count] : the first sale of a company s stock to the public …   Useful english dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”