IPO
Business & Finance abbreviation · Stock Market & Investing
| Stands for | Initial public offering |
|---|---|
| Categories | Business & Finance |
IPO stands for Initial public offering, a stock market & investing abbreviation.
First sale of a private company's shares to the public, after which the shares list and trade on a stock exchange. IPOs let companies raise capital and give early investors and employees a way to sell, while subjecting the company to public reporting and scrutiny.
Example: The delivery app's IPO priced at $38 a share, valuing the company at $11 billion.
Usage notes
Investment banks underwrite most IPOs, setting a price range, marketing the shares to investors on a roadshow and allocating them. Insiders usually face a lock-up period, often 180 days, before they can sell. Critics see the typical first-day "pop" as money left on the table by the issuer. Alternatives include direct listings and mergers with SPACs.
Related abbreviations
More stock market & investing abbreviations
- GDR – Global depositary receipt
- GTC – Good 'til canceled
- HFT – High-frequency trading
- HKEX – Hong Kong Exchanges and Clearing
- ICE – Intercontinental Exchange
- IOC – Immediate or cancel
- IR – Investor relations
- ISIN – International Securities Identification Number
- ITM – In the money
- IV – Implied volatility
- KOSPI – Korea Composite Stock Price Index
- LEAPS – Long-Term Equity AnticiPation Securities