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.

Look at other dictionaries:

  • initial public offering — noun The first offering to members of the public of stock in a company, normally followed by a listing of that stock on a stock exchange. Syn: float …   Wiktionary

  • Initial Public Offering — …   Википедия

  • initial public offer — A share issue done when a company comes to the market for the first time. Dresdner Kleinwort Wasserstein financial glossary * * * initial public offer initial public offer ➔ offer2 * * * initial public offer UK US noun [C, usually singular]… …   Financial and business terms

  • Public Offering — The sale of equity shares or other financial instruments by an organization to the public in order to raise funds for business expansion and investment. Public offerings of corporate securities in the U.S. must be registered with and approved by… …   Investment dictionary

  • public offering — See: public issue See also: initial public offering …   Accounting dictionary

  • public offering — See public issue See also initial public offering …   Big dictionary of business and management

  • public issue — public offering An offer for sale in which the public are invited, through advertisements in the national press, to apply for a new issue of shares or other securities at a price fixed by the company. Compare: issue by tender See also: initial… …   Accounting dictionary

  • public issue — public offering An offer for sale in which the public are invited, through advertisements in the national press, to apply for a new issue of shares or other securities at a price fixed by the company. Compare issue by tender See also initial… …   Big dictionary of business and management

  • Initial Offering Date — 1. The date at which a security is first made available for public purchase. The initial offering date is set during the underwriting process. For stocks, this marks the date of the initial public offering and the beginning of a quiet period,… …   Investment dictionary

  • initial — ▪ I. initial i‧ni‧tial 1 [ɪˈnɪʆl] adjective [only before a noun] happening first or at the beginning of an event or process: • Each portfolio has a minimum initial investment of $3,000. • the initial capital required for the project (= the money …   Financial and business terms

  • Public company — A public company usually refers to a company that is permitted to offer its registered securities (stock, bonds, etc.) for sale to the general public, typically through a stock exchange, but also may include companies whose stock is traded over… …   Wikipedia


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