IPO meaning in Stock Exchange ?

tuteeHUB earn credit +10 pts

Answer:

What is Initial Public Offering mean?

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 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.

reference
Full Form Category
Interdecadal Pacific Oscillation Academic & Science
Interest Paid On Accounts and Finance
Israel Philharmonic Orchestra Arts
Initial Public Offer Banking
Immediate Profit Opportunities Business
It's Probably Overpriced Business
Investment Process Outsourcing Business
Industrial Process Optimization Business
Ip Group Business
International Purchase Office Business
Installation Productivity Option Business
Internationale Pruefungs Ordnung Business
Infrastructure Production Operations Business
Internationale Prufungs Ordnung Business
Indirect Production Overhead Business
Illinois Philharmonic Orchestra Community
Input, Process, Output Computer Hardware
International Purchasing Office Computing
Internet Policy Observatory Computing
Instant Porsche Owner General
Insane People's Outing General
Indonesian Palm Oil General
International Progress Organization General
International Pop Overthrow General
itial Public Offering General
itial Public Offer General
International Programs Office General
went public General
itial Propaganda Offering General
International Project Office General
Introductory Price Offer General
Immediate Profit Opportunity General
Instant Profit Opportunity General
Internet Parts Ordering General
Inlet Port Opens General
Inspecao Periodica Obrigatoria General
Individual Purchase Order General
Intellectual Property Office Governmental
Indian Patent Office Governmental
Intellectual Property Office [U.K.] Governmental
Intellectual Property Owners Governmental
Investigation Police Officer Governmental
Ideological, Political, and Organizational Governmental
Initial Public Office Governmental
Institutional Parole Officer Governmental
Intellectual Property Organization Governmental
Inter Procedural Optimization Information Technology
International Pasta Organization International
International Pasta Organisation International
Internet Phase One Internet
Internet Provider of Origin Internet
Instituto Português de Oncologia Medical
Indian Postal Order Messaging
I Peek Out Messaging
Integrated Program Office Military and Defence
Intercept Point Optimization Military and Defence
International Program Office Military and Defence
Internet Protocol Over .... Networking
Input, Processing, and Output Softwares
Initial Player Offering Sports
Investing Pays Off Stock Exchange
Insane Profit Opportunity Stock Exchange
Initial Public Offering Stock Exchange

Report

Posted on 22 Nov 2024, this text provides information on Miscellaneous in Stock Exchange related to Stock Exchange. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.

Take Quiz To Earn Credits!

Turn Your Knowledge into Earnings.

tuteehub_quiz

Write Your Comments or Explanations to Help Others



webstory list tuteehub
Miscellaneous in Stock Exchange
webstory list tuteehub
Miscellaneous in Stock Exchange


Ever curious about what that abbreviation stands for? fullforms has got them all listed out for you to explore. Simply,Choose a subject/topic and get started on a self-paced learning journey in a world of fullforms.

Important Stock Exchange Links

open app imageOPEN APP