Initial Public Offerings (IPO)
What is an Initial Public Offering (IPO)?
Initial public offering (IPO) or stock market launch is where shares in a company are made available for purchase by the public for the first time. This process sees a privately held company transform into what is now referred to as a public company, and as such is listed on a stock exchange.
An IPO offers you the investor the opportunity to buy shares in a company just before it is listed on an exchange. This is usually done through a stock broker. IPO’s are very popular as the price can have high volatility in the first few days of trading.