Any one explain mean of IPO?

Question

It's related to Stock exchang

Answer 1

IPO stands for Initial Public Offering. It refers to the first time a company issues its stock to the public and thus "goes public". Generally, companies price the stock on somewhat conservative side to ensure that all the shares that are for sale will be sold and the company will be able to raise the desired amount of capital this way. As soon as the IPO opens, if the company's stock is seen by the investing public as cheaply priced, its price goes up, and there is opportunity to make money in a very short period. Often, after the initial rise in the stock price above the price at which it was offered by the issuing company (the primary market), its price in the seconday market falls to a more stable level. Therefore, a class of people specialise in investing in IPOs and making quick money by buying the IPO and selling within a very short period, say, within 1-2 days of buying. This practice was particularly wide spread in India a few years ago when the government required the initial stock price of shares issued by a company to be priced very conservatively, and the chances of sudden rise in prices of the stock, and consequently of making a fast buck, were very high.

Answer 2

An initial public offering (IPO) is the first sale of a corporation's common shares to public investors. The main purpose of an IPO is to raise capital for the corporation. While IPOs are effective at raising capital, they also impose heavy legal compliance and reporting requirements. The term only refers to the first public issuance of a company's shares; any later public issuance of shares is referred to as a Secondary Market Offering. A shareholder selling its existing (not new) shares to public on the Primary Market is an Offer for Sale.

IPOs generally involve one or more investment banks as "underwriters." The company offering its shares, called the "issuer," enters a contract with a lead underwriter to sell its shares to the public. The underwriter then approaches investors with offers to sell these shares.

The sale of shares in an IPO may take several forms. Common methods include:

Dutch auction
Firm commitment
Best efforts
Bought deal
Self Distribution of Stock
A large IPO is usually underwritten by a "syndicate" of investment banks led by one or two major investment banks (lead underwriter). Upon selling the shares, the underwriters keep a commission based on a percentage of the value of the shares they sell. Usually, the lead underwriters, i.e. the underwriters selling the largest proportions of the IPO, take the highest commissions—up to 8% in some cases.

Multinational IPOs may have as many as three syndicates to deal with differing legal requirements in the home country, the United States and other countries.

Because of the wide array of legal requirements, IPOs typically involve one or more law firms with major practices in securities law, such as the Magic Circle firms of London and the white shoe firms of New York City.

The offering will usually include the issuance of only primary shares, but may also include the sale of secondary shares.

Answer 3

it means initial public offer when a company issue share to public for the first time it is called as ipo

Answer 4

If you want any info on stock go to www.investopedia.com
You will be glad you did!