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Investing Glossary:
Initial public offering (IPO)
Copyright 2009,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
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| Term: |
| Initial public offering (IPO)
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| Definition: |
| A company`s first Sale of Stock to the public. Securities offered in an IPO are often, but not always, those of young, small companies seeking outside equity Capital and a public Market for their stock. Investors purchasing stock in IPOs generally must be prepared to accept considerable risks for the possibility of large gains. IPOs by Investment companies (closed-end funds) usually include Underwriting fees that represent a Load to buyers.
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