Initial public offering
hideInitial public offering (IPO), also referred to simply as a " offering" or "flotation," 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 privately-owned companies looking to become publicly traded.
In an IPO the issuer may obtain the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), best offering price and time to bring it to market.
An IPO can be a risky investment. For the individual investor, it is tough to predict what the stock or shares will do on its initial day of trading and in the near future since there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, and they are therefore subject to additional uncertainty regarding their future value. However, in order to make money, calculated risks need to be taken.
For more information about Initial public offering, read the full article at
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News tagged with initial public offering
Power grid chief touts electric-car payback
Sep 25, 2009 |
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U.S. power grid chief Jon Wellinghoff is touting the long-term cost savings of electric cars, saying the vehicles could earn $1,500 a year in paybacks for their owners when their batteries are connected to the power grid.
Baidu CEO draws big crowd in Google's backyard
Sep 24, 2009 |
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(AP) -- The billionaire founder of a popular search engine drew a big crowd Wednesday at Stanford University - and it wasn't one of the guys that started Google Inc. just a few miles from the campus they ...
Private exchange to aid startups seeking more cash
Sep 02, 2009 |
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(AP) -- Since June, a Web site called SharesPost has been helping a small pool of qualified buyers and sellers trade shares in fast-growing startups that have not yet gone public. Now, the private stock exchange is hoping ...
EBay working on alternative software for Skype
Jul 31, 2009 |
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(AP) -- EBay Inc. is developing software it might use to continue running the online telecommunications service Skype if it cannot resolve a legal dispute with a separate company run by the service's founders.
VC investments plunge 51 pct to $3.7 billion in 2Q
Jul 21, 2009 |
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(AP) -- Venture capitalists cut their U.S. investments in half during the spring, the second-consecutive quarter to mark a more than 50 percent decline, leaving the money flowing to startups at the slowest trickle in 12 ...
Offer puts value of at least $6.5B on Facebook
Jul 13, 2009 |
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(AP) -- How much is Facebook worth? A Russian investment firm appears to put it at $6.5 billion to $10 billion.
Facebook, Twitter and peers for sale -- privately
Jun 27, 2009 |
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(AP) -- Scott Painter makes his living betting on startup companies, having played a role in launching 29 of them over the years. But with the bad economy choking initial public offerings and acquisitions, ...
LinkedIn connects with ex-Yahoo exec as new CEO
Jun 24, 2009 |
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(AP) -- After six months of grooming, LinkedIn Corp. founder Reid Hoffman has decided former Yahoo Inc. executive Jeff Weiner is ready to take over his job running the Internet's largest site devoted to professional networking.
India's Tata Consultancy Services Q4 net profit up 4.6 pct
Apr 20, 2009 |
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India's largest software exporter Tata Consultancy Services Monday said net profit rose 4.61 percent in the fourth quarter, hit by lower fees and cuts in technology spending due to the global economic slowdown.
EBay plans IPO for Skype, undoing $2.6B-plus deal
Apr 14, 2009 |
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(AP) -- EBay Inc. plans to spin off its Internet communications service Skype through an initial public offering, undoing a $2.6 billion acquisition that puzzled analysts and eBay struggled to justify.
A strong business plan is most important when investing in start-ups
Apr 08, 2009 |
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When making investments, investors look for start-ups that have a strong business plan and a strong management team. A new study in The Journal of Finance reveals that while strong management is important, ultimately a stro ...
