FUTUBULL Help Center-What is an initial public offering
English
Back
Open Account

What is an initial public offering

Initial public offering, also known as IPO or public share issuance, is a way of raising capital from public investors.


Definition

An initial public offering is the process of offering shares of a private corporation to the public in a new stock issuance. Public investors include individuals and institutional investors. Through this process, private companies will be transformed into listed companies.

After going public, private investors will be able to fully realize gains from their investment as it usually includes premiums for current private investors. It also allows public investors to take part in the offering.

After the initial public offering, the company's shares will be tradedfreelyon the open market, and the funds will flow among public investorsonly.

Although an initial public offering hasmany advantages, its shortcomings can not be ignored. An IPO is expensive, and the costs of maintaining a public company are ongoing, also unrelated to the other costs of doing business. Moreover, the company becomes required to disclose financial information, this information might help competitors.

Market Insights
HK Tech and Internet Stocks
View More
Nancy Pelosi Portfolio
Hot Topics
Will the 'tariff stick' strike again? Will the market remain 'reactive'?
On September 25 Eastern Time, Trump once again wielded the tariff weapon, announcing a new round of tariff increases. Starting in October, h Show More