IPO
From Reuters Financial Glossary
(Redirected from Initial Public Offering)
Synonym: Initial Public Offering
The first offering of shares to the public by a privately owned company. IPOs are used by companies to raise new funds, or to achieve a listing on an exchange. The issuer normally offers the shares to the public through an underwriter who sets the price, promotes the offering and usually guarantees to take the shares at a certain price, to protect the issuer against adverse market movements. Also known as a flotation or going public.
See also: Going Public
