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.

SpaceX Holding Off on IPO; Five Similar Stocks to Watch

By Thursday, February 5, 2015

SpaceX IPO
SpaceX IPO the Final Frontier?
Is an initial public offering (IPO) the final frontier for SpaceX… Read More? Investors might be interested in gravitating toward a SpaceX IPO, but the company doesn’t seem to be in any rush to jettison private life.
SpaceX, a sort of private NASA, was founded in 2002 by Elon Musk. No one-hit wonder, Musk is also fa

Xiaomi IPO: Why it May Be the Most Highly Anticipated IPO in 2015

By Tuesday, February 3, 2015

Xiaomi IPO 2015
Xiaomi: China-Based Mobile Phone Upstart to Be Hottest IPO in 2015?
In the crowded mobile market with a brutally high barrier to entry, Xiaomi Technology Ltd. Co. … Read Morehas gone from zero to hero in just a few short years. With a $45.0-billion valuation, Xiaomi is expected to be the hottest initial public offering (IPO) in 2015.(1) And nothi

How Does Uber Make Money? Why It May Be the Most Highly Anticipated IPO of 2015

By Sunday, February 1, 2015

Uber Most Highly Anticipated IPO of 2015How Uber Has Earned a Surprising $40.0-Billion Valuation
Many companies get their start by capitalizing on an untapped niche market, but few have upended an entire industry like Uber. Fewer still have been as polarizing. Toss in a valuation of $40.0 billion and you can see why so many investors are hoping Uber lists publicly in 2015. B… Read More

How Pinterest Is Making Money and Why Facebook Should Be Scared

By Sunday, February 1, 2015

How Pinterest Makes MoneyPinterest: How This Hot Potential IPO Is Making Money
Frankly, I don’t know any men who have a Pinterest account, but I know a lot of women who do. And that’s one reason Pinterest makes money. It has the perfect demographic for advertisers, and now that it’s making money, Pinterest could be one of the more interesting initial publ… Read More

How Snapchat Makes Money: Two New Revenue-Generating Streams to Attract Investors

By Sunday, February 1, 2015

how does snapchat make money
How Snapchat Makes Money: Snapcash and Disappearing Ads
In the beginning, social media sites like Facebook, Inc. (NASDAQ/FB)… Read More were more of a passing curiosity than anything. What does my ex-girlfriend look like now? Where does my old roommate that I no longer bother keeping in touch with work? But in just a few short years, social medi

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