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 Glossary   >   I   >   "Initial public offering (IPO)" Definition   

        Initial public offering (IPO)

A company"s first sale of stock to the public. Securities offered in an I.P.O. are often, but not always, those of young, small companies seeking outside equity capital and a public market for their stock. Investors purchasing stock in I.P.O.s generally must be prepared to accept very large risks for the possibility of large gains. I.P.O.s by investment companies (closed-end funds) usually contain underwriting fees which represent a load to buyers.

Initial public offering (IPO)


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Initial public offering (IPO) - A company"s first sale of stock to the public. Securities offered in an I.P.O. are often, but not always, those of young, small companies seeking outside equity capital and a public market for their stock. Investors purchasing stock in I.P.O.s generally must be prepared to accept very large risks for the possibility of large gains. I.P.O.s by investment companies (closed-end funds) usually contain underwriting fees which represent a load to buyers.


Initial public offering (IPO) : a company"s first sale of stock to the public. securities offered in an i.p.o. are often, but not always, those of young, small companies seeking outside equity capital and a public market for their stock. investors purchasing stock in i.p.o.s generally must be prepared to accept very large risks for the possibility of large gains. i.p.o.s by investment companies (closed-end funds) usually contain underwriting fees which represent a load to buyers.