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
initial public offering, IPO, initial offeringnoun
a corporation's first offer to sell stock to the public
Wikipedia
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
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
Numerology
Chaldean Numerology
The numerical value of initial offering in Chaldean Numerology is: 1
Pythagorean Numerology
The numerical value of initial offering in Pythagorean Numerology is: 1
Examples of initial offering in a Sentence
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.
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"initial offering." Definitions.net. STANDS4 LLC, 2024. Web. 14 Jun 2024. <https://www.definitions.net/definition/initial+offering>.
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