Financial Definition of Initial Public Offering (Ipo)
Meaning of Initial Public Offering (Ipo)
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 very large risks for the possibility of large gains. IPO’s by investment companies (closed-end funds) usually contain underwriting fees which represent a load to buyers.
Related Entries of Initial Public Offering (Ipo) in the Encyclopedia of Law Project
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Initial Public Offering (Ipo) in Historical Law
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Legal Abbreviations and Acronyms
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