Initial Public Offering - IPO

The first sale of stock by a private company to the public. IPOs are often smaller, younger companies seeking capital to expand their business.

Also referred to as a "Public Offering."



IPOs can be a risky investment, for the individual investor it is tough to predict what the stock will do on its initial day of trading.

Also known as going public.




IPO Basics Tutorial - What's an IPO, and how did everybody get so rich off them during the dot-com boom? We give you the scoop.

Don't Forget To Read The Prospectus! - Learn to decipher the secret language of the prospectus - it can tell you a lot about a company's future.
Related Terms

Direct Public Offering

Eating Stock

Greenshoe Option

Gross Spread

Gun Jumping

Lock-up Agreement

Prospectus

Public Offering Price (POP)

Red Herring

Stock

Takedown

Underwriter

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