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

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Initial public offering

treasury stock

Banking; Initial public offering

Stock a company issues then buys back, at which time it is placed in the company's treasury, where it earns no dividends and carries no voting priviledges.

Investment bankers that assume the risk of buying new issues of securities from a corporation and distributes them to the public. The underwriter will profit from the fees generated by the offering ...

units

Banking; Initial public offering

A group of securities, generally from the same company, that are bundled together and sold as a single piece. They usually consist of shares of common stock plus shares of warrants.

use of proceeds

Banking; Initial public offering

How the company plans to use the monies it generated from an IPO or Secondary.

valuation

Banking; Initial public offering

The initial measure of what a company expecting to come public is worth that is used for consideration of whether the company is fairly valued. Depending on market conditions, this value can be ...

venture capital

Banking; Initial public offering

Often referred to as 'seed money'. This is money loaned to the company in its earliest stages of development. Security for that money will carry a high price tag, at the company's expense, as the ...

volatility

Banking; Initial public offering

Greater than normal movement in the price of a stock from its high and low. This term usually refers to intraday moves but can also apply to weekly price movements or longer periods.