A company selling its shares to the public for the first time
An IPO, or initial public offering, is when a private company lists on an exchange and offers shares broadly to investors. The company raises money and gains visibility and credibility. Investors may get to buy at the offer price set beforehand, but the first traded price can open below it.
An IPO priced at $1,500 that opens at 2,400 is up 60%. Open at 1,200 instead and it is down 20%.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.