You're here:  Home --> Dictionary --> I --> IPO

Investment Banks
Quiet Period
Underwriting
Stock Buyback

Initial Public Offering (IPO)
Term category: Stocks
In 10 words or less:  An IPO occurs when a company sells stock to the public for the first time.

Definition: Companies issues shares to the public through IPO's to raise capital for future growth.

StockJargon Advice: IPO's are underwritten by investment banks.  Because the investment banks assume considerable risk in this process, they price the stocks at low prices in order to make sure they can sell all of the shares.  This is why many IPO's "pop" on their first day.

When a company offers more shares of stock sometime in the future, it's called a seasoned equity offering (SEO)

Related Articles

An Introduction to Investing
This article will help you get acquainted with the basics.

Beach, Golf Everyday? It's Possible!
With the proper planning, you can retire comfortably

Buy and Hold Investing
This article will explain what "buy and hold" investing is and what makes it so great

Related Books

The Five Rules for Successful Stock Investing by Pat Dorsey
Reminiscences of a Stock Operator By Edwin Lefevre
Buffett: The Making of an American Capitalist by Roger Lowenstein
Beating the S&P with Dividends by Peter O'Shea

# -A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z