"IPO" by Got Credit is licensed under CC BY 2.0 For those newbies in stock market, you might think that getting shares of an IPO is just a decision to get shares or not. In reality, your chances will depend on the number of shares available and the demand for that particular stock. Lately, IPO became synonymous with the word “raffle”. Wikipedia defined Initial public offering (IPO) as a type of public offering in which shares of stock in a company usually are sold to institutional investors that in turn sell to the general public, on a securities exchange, for the first time. Through this process, a private company transforms into a public company. Initial public offerings are used by companies to raise expansion capital, to possibly monetize the investments of early private investors, and to become publicly traded enterprises. A company selling shares is never required to repay the capital to its public investors. After the IPO, when shares trade...
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