Business

Reddit says it has filed with SEC to go public

Social media platform Reddit said Wednesday it has confidentially submitted a draft registration with the US Securities and Exchange Commission to go public on Wall Street.

Automotive

Volvo Cars shares soar after IPO

Shares of the Swedish car brand Volvo debuted Friday on the Stockholm stock exchange, with the price rising sharply in early trading.

Business

Alibaba shares soar after Jack Ma reported on Europe trip

Alibaba shares surged more than six percent on Wednesday after billionaire founder Jack Ma was reported to be in Europe, fuelling investor hopes that the worst of China's regulatory crackdown for the internet giant might ...

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Initial public offering

Initial public offering (IPO), also referred to simply as a " offering" or "flotation," is when a company issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded.

In an IPO the issuer may obtain the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), best offering price and time to bring it to market.

An IPO can be a risky investment. For the individual investor, it is tough to predict what the stock or shares will do on its initial day of trading and in the near future since there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, and they are therefore subject to additional uncertainty regarding their future value. However, in order to make money, calculated risks need to be taken.

This text uses material from Wikipedia, licensed under CC BY-SA