IPO

An IPO is an Initial Public Offering. This is the initial sale of stock to the public from private investors and holders of the company. There are several reasons why a company would issue stock to the public. Publicly traded stock allows the company to offer shares in mergers and acquisitions, easing the mechanism in purchasing other companies and lowering the cost. Publicly traded stock also allows the company to offer incentives to employees, by giving shares of stock. The greater exposure and publicity also help retain and attract talented employees and management. The value of a company is also higher compared to when it’s private. This is because increased levels of liquidity and transparency are more attractive to investors, who will allocate a higher multiple for the company’s value. The biggest downfall to a company issuing stock to the public is greater scrutiny from investors, as all financial records are made public. This comes in the form of an increase in legal and marketing costs, plus time spent with analysts and other investors explaining the inner workings of the company.


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Can New IPOs Even Make It in This Market? Instructure Inc (NYSE:INST) is like any other initial public offering (IPO) to hit the market. It’s expensively priced, the company is still at an early stage of development, and investment risk…

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SpaceX IPO Opens New Possibilities Space Exploration Technologies Corp., more commonly known as SpaceX, is the Holy Grail for those who spent their childhood pretending to be astronauts. If Elon Musk makes an initial public offering (IPO) for SpaceX a…

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