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NEWS AND MAGAZINE TEMPLATE
Initial public offering (IPO)
Glossaries
| Term | Main definition |
|---|---|
| Initial public offering (IPO) | The first time a company offers stock to the investing public. An IPO typically occurs when a company wants to expand more rapidly and seeks additional money to support its growth. A number of studies have demonstrated that buying into IPOs in which the general public can participate produces subpar investment returns. A high level of IPO activity may indicate a cresting stock market, as companies and their investment bankers rush to cash in on a “pricey” marketplace.
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