The term initial public offering (IPO) has been a buzzword on Wall Street and among investors for decades. The Dutch are credited with conducting the first modern IPO by offering shares of the Dutch East India Company to the general public.
What is an IPO & how does it work?
An IPO is an initial public offering. In an IPO, a privately owned company lists its shares on a stock exchange, making them available for purchase by the general public. Many people think of IPOs as big money-making opportunities—high-profile companies grab headlines with huge share price gains when they go public.
What is the opening price of an IPO?
The opening price is the price shares begin trading at on an exchange and is determined by compiling the bids of investors on the exchanges. What is the difference between an IPO and direct listing? An IPO is when a company issues new shares which an underwriter helps to sell and market.
