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What is IPO?

Basics

IPO

The procedure by which an unlisted company offers its shares to the public for the first time and lists them. Early volatility is very large and depends on the offering price and the number of shares in circulation at the start. The absence of past data to compare against right after listing also makes judgment harder.

IPOBookbuildingOffer priceSubscriptionListingthe offer price is negotiated, not a settled value

Lessons using this term (with diagrams)

Related terms

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IPO meaning — Trading glossary | MarketSurfer