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Finance & Banking vocabulary · Corporate Finance

IPO

Meaning in finance & banking, with examples

abbreviationCommon term

In finance & banking, IPO means: Short for initial public offering: the first time a private company sells its shares to the public on a stock exchange.

In Turkish: halka arz

How it is used

Said letter by letter: I-P-O. Companies go public through an IPO; investment banks underwrite, price and launch it. Common phrases: plan an IPO, the IPO price, an IPO that is oversubscribed.

Example sentences

  1. The company used the money from its IPO to pay down bank debt.

  2. The IPO was three times oversubscribed.

Common collocations

  • plan an IPO
  • IPO price
  • go public through an IPO
  • oversubscribed IPO
  • equityThe owners' share of a company: what is left when liabilities are taken away from assets. It includes paid-in capital and retained profits.
  • valuationAn estimate of what a company, asset or property is worth, or the process of calculating it.
  • M&AShort for mergers and acquisitions: deals in which companies combine with each other or one company buys another.
  • capitalMoney and other financial resources used to start and run a business; for banks, the owners' funds that absorb losses and protect depositors.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Corporate Finance

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This page explains English vocabulary for learners. It is not financial advice.