What does initial public offering mean?

Definitions for initial public offering
ini·tial pub·lic of·fer·ing

This dictionary definitions page includes all the possible meanings, example usage and translations of the word initial public offering.

Princeton's WordNet

  1. initial public offering, IPO, initial offeringnoun

    a corporation's first offer to sell stock to the public

Wiktionary

  1. initial public offeringnoun

    The first offering to members of the public of stock in a company, normally followed by a listing of that stock on a stock exchange.

Wikipedia

  1. Initial public offering

    An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges. Through this process, colloquially known as floating, or going public, a privately held company is transformed into a public company. Initial public offerings can be used to raise new equity capital for companies, to monetize the investments of private shareholders such as company founders or private equity investors, and to enable easy trading of existing holdings or future capital raising by becoming publicly traded. After the IPO, shares are traded freely in the open market at what is known as the free float. Stock exchanges stipulate a minimum free float both in absolute terms (the total value as determined by the share price multiplied by the number of shares sold to the public) and as a proportion of the total share capital (i.e., the number of shares sold to the public divided by the total shares outstanding). Although IPO offers many benefits, there are also significant costs involved, chiefly those associated with the process such as banking and legal fees, and the ongoing requirement to disclose important and sometimes sensitive information. Details of the proposed offering are disclosed to potential purchasers in the form of a lengthy document known as a prospectus. Most companies undertake an IPO with the assistance of an investment banking firm acting in the capacity of an underwriter. Underwriters provide several services, including help with correctly assessing the value of shares (share price) and establishing a public market for shares (initial sale). Alternative methods such as the Dutch auction have also been explored and applied for several IPOs.

ChatGPT

  1. initial public offering

    An initial public offering (IPO) is the process by which a private company offers its shares to the public for the first time, transforming itself into a public company. This is typically done through a securities exchange in order to raise capital for expansion or other business initiatives. The IPO is typically managed by one or more investment banks who also arrange the sale of the shares to the public.

Wikidata

  1. Initial public offering

    An initial public offering or stock market launch is a type of public offering where shares of stock in a company are sold to the general public, on a securities exchange, for the first time. Through this process, a private company transforms into a public company. Initial public offerings are used by companies to raise expansion capital, to possibly monetize the investments of early private investors, and to become publicly traded enterprises. A company selling shares is never required to repay the capital to its public investors. After the IPO, when shares trade freely in the open market, money passes between public investors. Although an IPO offers many advantages, there are also significant disadvantages. Chief among these are the costs associated with the process, and the requirement to disclose certain information that could prove helpful to competitors, or create difficulties with vendors. Details of the proposed offering are disclosed to potential purchasers in the form of a lengthy document known as a prospectus. Most companies undertaking an IPO do so with the assistance of an investment banking firm acting in the capacity of an underwriter. Underwriters provide a valuable service, which includes help with correctly assessing the value of shares, and establishing a public market for shares. Alternative methods such as the dutch auction have also been explored. In terms of size and public participation, the most notable example of this method is the Google IPO. China has recently emerged as a major IPO market, with several of the largest IPOs taking place in that country.

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Numerology

  1. Chaldean Numerology

    The numerical value of initial public offering in Chaldean Numerology is: 6

  2. Pythagorean Numerology

    The numerical value of initial public offering in Pythagorean Numerology is: 1

Examples of initial public offering in a Sentence

  1. Lee Dong-wook:

    Saudi Aramco seems to be boosting investments in downstream projects ahead of an initial public offering.

  2. Danielle Citron:

    Imagine the night before a company's Initial Public Offering, a deepfake video appears showing the CEO committing a crime. If the deepfake video is shared widely, the company's stock price may falter and a tremendous amount of money may be lost. Of course, the video could be debunked in a few days, but by that time the damage has already been done.

  3. Executive Vice Chairman Joe Tsai:

    Are we thrilled that the stock is below IPO (initial public offering) price? No, absolutely not.

  4. Pham Ngoc Minh:

    We will follow the rule to list within one year (from the initial public offering date).

  5. Angel Vila:

    We have been in Mexico for so many years, investing so much money, and now that it's starting to fly and make money, it would be strange for us to leave now, it's a growing business that could be attractive for an initial public offering.


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"initial public offering." Definitions.net. STANDS4 LLC, 2024. Web. 26 Apr. 2024. <https://www.definitions.net/definition/initial+public+offering>.

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