What does initial offering mean?

Definitions for initial offering
ini·tial of·fer·ing

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

Princeton's WordNet

  1. initial public offering, IPO, initial offeringnoun

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

Wikipedia

  1. initial 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 offering

    An initial offering, also known as Initial Public Offering (IPO), is a process wherein a privately held company becomes public by selling a portion of itself in the form of shares to potential investors, thereby raising capital from the public market. This initial sale can include stocks, bonds, or other financial instruments. The offering provides the company with capital for its growth while providing investors with a stake in the company.

Matched Categories

How to pronounce initial offering?

How to say initial offering in sign language?

Numerology

  1. Chaldean Numerology

    The numerical value of initial offering in Chaldean Numerology is: 1

  2. Pythagorean Numerology

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

Examples of initial offering in a Sentence

  1. Robert Beauregard:

    There is no guarantee that a stock will continue to trade at or above its initial offering price once it starts trading on a public stock exchange, that said, the reason most people invest in IPOs is for the opportunity to invest in the company relatively early in its life cycle and profit from potential future growth.

Translation

Find a translation for the initial offering definition in other languages:

Select another language:

  • - Select -
  • 简体中文 (Chinese - Simplified)
  • 繁體中文 (Chinese - Traditional)
  • Español (Spanish)
  • Esperanto (Esperanto)
  • 日本語 (Japanese)
  • Português (Portuguese)
  • Deutsch (German)
  • العربية (Arabic)
  • Français (French)
  • Русский (Russian)
  • ಕನ್ನಡ (Kannada)
  • 한국어 (Korean)
  • עברית (Hebrew)
  • Gaeilge (Irish)
  • Українська (Ukrainian)
  • اردو (Urdu)
  • Magyar (Hungarian)
  • मानक हिन्दी (Hindi)
  • Indonesia (Indonesian)
  • Italiano (Italian)
  • தமிழ் (Tamil)
  • Türkçe (Turkish)
  • తెలుగు (Telugu)
  • ภาษาไทย (Thai)
  • Tiếng Việt (Vietnamese)
  • Čeština (Czech)
  • Polski (Polish)
  • Bahasa Indonesia (Indonesian)
  • Românește (Romanian)
  • Nederlands (Dutch)
  • Ελληνικά (Greek)
  • Latinum (Latin)
  • Svenska (Swedish)
  • Dansk (Danish)
  • Suomi (Finnish)
  • فارسی (Persian)
  • ייִדיש (Yiddish)
  • հայերեն (Armenian)
  • Norsk (Norwegian)
  • English (English)

Word of the Day

Would you like us to send you a FREE new word definition delivered to your inbox daily?

Please enter your email address:


Citation

Use the citation below to add this definition to your bibliography:

Style:MLAChicagoAPA

"initial offering." Definitions.net. STANDS4 LLC, 2024. Web. 14 Jun 2024. <https://www.definitions.net/definition/initial+offering>.

Discuss these initial offering definitions with the community:

0 Comments

    Are we missing a good definition for initial offering? Don't keep it to yourself...

    Image or illustration of

    initial offering

    Credit »

    Free, no signup required:

    Add to Chrome

    Get instant definitions for any word that hits you anywhere on the web!

    Free, no signup required:

    Add to Firefox

    Get instant definitions for any word that hits you anywhere on the web!

    Browse Definitions.net

    Quiz

    Are you a words master?

    »
    a meter that shows mileage traversed
    A odometer
    B cycling
    C rapture
    D accident

    Nearby & related entries:

    Alternative searches for initial offering: