InvestorWords.com

IPO


Definition

Initial Public Offering. The first sale of stock by a company to the public. Companies offering an IPO are sometimes new, young companies, or sometimes companies which have been around for many years but are finally deciding to go public. IPOs are often risky investments, but often have the potential for significant gains. IPOs are often used as a way for a young company to gain necessary market capital.

Featured Tip

Warren Buffett's Suggestion on IPOsWarren Buffett recommends avoiding IPOs, for the following reason: "It's almost a mathematical impossibility to imagine that, out of the thousands of things for sale on a given day, the most attractiv ... Read more


Related Videos




Search for another term


Browse by Letter: # 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