9 Terms
Home > Industry/Domain > Banking > Initial public offering
Initial public offering
Referring to the process of transforming a private company into a public company by selling shares of its stock to the general public for the first time on a securities exchange.
Industry: Banking
Add a new termContributors in Initial public offering
Initial public offering
offering date
Banking; Initial public offering
The first day a security is publicly offered for sale.
offering price
Banking; Initial public offering
The price for which a new security issue will be sold to the public.
opening premium
Banking; Initial public offering
If the opening price of an IPO is higher than its initial price, the difference would be the opening premium.
outstanding shares
Banking; Initial public offering
The number of shares that have been issued by the company which are held by the insiders and the general investing public.
overallotment
Banking; Initial public offering
Often referred to as the 'green shoe'. An amount of shares, generally no greater than 15% of the orignal shares issued, that is reserved for issuance at the underwriters option at the original price. ...
oversubscribed
Banking; Initial public offering
When investors want to buy more shares of a new security than will be available. Under this condition, the price of the security has a greater likelihood of opening at a premium to the offering price ...