How comparison options affect stock buys

Should I invest my money with a small chance of big returns? Or is it better to pick investments that promise a series of modest returns? A psychologist from the University of Basel conducted a scientific experiment to study ...

Should companies sell know-how, components, or systems?

Researchers from American University, University of Arizona, University of Texas-Arlington, and Texas Tech University published a new Journal of Marketing article that explores the "what to sell" question that companies and ...

Do IPO firms become myopic?

Many analysts of financial markets are concerned that financial markets provide managers with economically harmful incentives. The rationale: Public firms have dispersed ownership, which in turn, leads to short-term pressures ...

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Initial public offering

Initial public offering (IPO), also referred to simply as a " offering" or "flotation," is when a company issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded.

In an IPO the issuer may obtain the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), best offering price and time to bring it to market.

An IPO can be a risky investment. For the individual investor, it is tough to predict what the stock or shares will do on its initial day of trading and in the near future since there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, and they are therefore subject to additional uncertainty regarding their future value. However, in order to make money, calculated risks need to be taken.

This text uses material from Wikipedia, licensed under CC BY-SA