What is an IPO?
IPO stands for initial public offering. How do IPOs work? Should you invest in one? Learn more at the MoneySense Glossary.
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IPO stands for initial public offering. How do IPOs work? Should you invest in one? Learn more at the MoneySense Glossary.
IPO stands for initial public offering: the process of a privately owned company offering shares to the public for the first time, via a stock exchange. Companies “go public” to raise capital to fund their growth. IPOs are facilitated by teams of underwriters and investment banks, which conduct a financial analysis and set the share price and offering date. If a company later issues more shares to the public, this is called a “secondary offering.”
Example: “To fund its expansion, the restaurant chain is taking the IPO route.”
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