Definition:
Initial Public Offering (IPO)
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An initial public offering (IPO) occurs when a company issues stock or shares to the public for the first time.IPOs are often done by small, young companies that are looking to raise growth capital.
But initial public offerings are also done by large privately-owned companies that are looking for liquidity and decide to become publicly traded.
In an IPO the issuing company will usually retain an investment bank, which assists the company in deciding what type of security to issue, the offering price of the security and the best time to bring the security to market.
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August 15, 2010 | Adam Fish
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