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 ipo
Facebook creates dual-class structure, but no IPO
Nov 24, 2009 |
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(AP) -- Facebook has created a dual-class stock structure designed to give founder Mark Zuckerberg and other existing shareholders control over the company.
Ancestry.com hopes to raise $100 million in IPO
Nov 04, 2009 |
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(AP) -- Genealogy Web site Ancestry.com hopes to raise about $100 million when it goes public this week. With more than a million paying subscribers, little competition, a small debt load and a record of increasing revenues, ...
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 ...
Yahoo! sells stake in Alibaba.com for 150 mln dlrs
Sep 14, 2009 |
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US Internet company Yahoo! announced on Monday that it has sold its one percent stake in Hong Kong-listed e-commerce company Alibaba.com for some 150 million dollars.
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 ...
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.
OpenTable shares soar nearly 60 pct in IPO feast
May 21, 2009 |
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(AP) -- Online restaurant reservation service OpenTable Inc. proved there's still an appetite for new stock offerings despite the sour economy.
SolarWinds shares climb during first trading day
May 20, 2009 |
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(AP) -- Shares of SolarWinds Inc. climbed Wednesday during the network management software maker's first day of trading, marking the latest flicker of life in an IPO market that has barely registered a pulse this year.
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.
