Link to This Resource: Initial Public Offering
http://privateequityblogger.com/2008/06/initial-public-offering.html
Initial Public Offering
An Initial Public Offering (IPO) is when a company first issues common stocks or shares to the public. For smaller companies, this is a chance to gain capital for expansion and large privately owned companies opening up to be publicly traded. Investors take a risk investing during the IPO because it is difficult to predict how the shares will do without prior data and the IPO is typically a turbulent transitioning period for the company. The Initial Public Offering is one way that private equity firms receive returns on their investments.
