What The Meaning Of Ipo

What the meaning of ipo

How It Works

The proceeds from the sale of stockshares in an initial public offering provide the issuing company with capital.

What the meaning of ipo

For this reason, many start-up companies issue IPOs because they're seeking a source of capital to fund growth.

IPOs are introduced to the market by an underwritinginvestment bank, which aids the issuing company by soliciting potential investors.

What the meaning of ipo

In addition, the underwriter helps the issuing company to settle on the price at which the stock should be offered to investors.

IPOs represent the first time an issuing company will financially benefit from the public sale of its stock.

What is an IPO? - CNBC Explains

Following the IPO, shares trade between buyers and sellers on the open market, whereby the underlying company receives no compensation.