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 initial public offering (IPO) calendar continues to attract investors, with five major upcoming IPOs in August.IPOs could offer investors a unique opportunity to generate a remarkable amount of profit as soon as the company hits the market. Below is a preview of the five biggest upcoming offerings. Mind you, investing in IPOs may. Read More
On Thursday July 16th, NantKwest (NASDAQ/NK), a healthcare provider producing cancer therapies, filed its initial public offering (IPO) documents with the Securities and Exchange Commission (SEC). Here’s what investors need to know about the upcoming NantKwest IPO.Who is NantKwest?NantKwest is the 51st healthcare company. Read More
TerraForm Global Inc. (NASDAQ/GLBL) recently submitted a filing to the Securities and Exchange Commission about its upcoming initial public offering (IPO). Here’s what you need to know about the upcoming TerraForm IPO. (Source: Securities and Exchange Commission, July 20, 2015.)Who is TerraForm Global?TerraForm Global. Read More
The tech industry has a new giant on board. But it is not that new as it has been around since 1998. I’m talking about PayPal Holdings, Inc. (NASDAQ/PYPL). After being spun off from eBay Inc. (NASDAQ/EBAY), the company instantly became the sixth-largest tech company in the U.S., with a market cap of close to $50.0 billion.While previously. Read More
PayPal (NASDAQ/PYPL)submitted a filing F-1 form to the Securities and Exchange Commission (SEC) on February 25, 2015, for its initial public offering (IPO), separating from its parent company. (Source: Securities and Exchange Commission, last accessed July 20, 2015.)Investors interested in PayPal’s growth and future potential. Read More