Sunday, January 2, 2011

Initial Public Offering

An Initial Public Offering, or IPO, is when a company makes its initial offer of shares to the public; usually involving a subsequent listing and quotation of its share on a recognised exchange. Companies will undergo an IPO in order that the owners may sell down their stake in the company, or to raise capital for the company to use in expansion and growth plans. Closed-end funds and ETFs will usually make their initial launch via an IPO.

Synonyms: IPO, Public offering, Capital raising, Share issuance, Share offering

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