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.
The Importance of an American Farmland IPO
Food shortages are a major worry for global policymakers, but an upcoming IPO by the American Farmland Co. may be a step in the right direction. The American Farmland IPO is a commercial venture, yes. But its implications for preventing food shortages shouldn’t be underestimated.
Pure Storage, Inc. IPO Could Be the Best of 2016Pure Storage, Inc. (NYSE:PSTG) is an enterprise storage company that develops flash storage arrays as substitutes for old school disc storage and traditional hard drives. The company is set to make its stock market debut in an initial public offering (IPO) Wednesday, following the much-hyped.
SpaceX IPO Makes Asteroid Mining More Likely
Although NASA is the most obvious beneficiary of a SpaceX TechnologiesCorp. initial public offering (IPO), other space-related firms will also reap the rewards. Planetary Resources Inc., which hopes to extract precious metals from asteroids, has already transported a test probe aboard.
Ferrari IPO Roadshow Could Start as Early as Friday
When can investors expect a Ferrari IPO? According to reports by CNBC and auto industry news outlets, Fiat Chrysler Automobiles N.V. (NYSE:FCAU) could launch its “roadshow” ahead of the eagerly awaited initial public offering of its Ferrari brand as early Friday, October 2, 2015..
Microcap Projection Maker Boxlight Ready for Upcoming IPO
Boxlight Corp (NASDAQ:BOXL) was supposed to go public last August or last July. However, the company expects to execute its initial public offering (IPO) on the NASDAQ, under the symbol “BOXL,” before the end of September. (Source: IPO Activity, NASDAQ.com, last accessed.
Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.
Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.