Okuzeka
Investing & the Stock Market vocabulary · Stocks & Shares

IPO

Meaning in investing & the stock market, with examples

/ˌaɪ piː ˈoʊ/abbreviationCore term

In investing & the stock market, IPO means: Short for initial public offering: the first time a private company sells its shares to the public and lists them on a stock exchange.

In Turkish: halka arz, ilk halka arz

How it is used

Said letter by letter: I-P-O. A company launches, prices or postpones an IPO; investors subscribe to it or apply for shares; a stock debuts or makes its debut on the first trading day. The verb phrase is 'go public'.

Example sentences

  1. The IPO was oversubscribed four times, so investors received only part of what they asked for.

  2. The company postponed its IPO because of weak market conditions.

Common collocations

  • launch an IPO
  • IPO price
  • oversubscribed IPO
  • go public
  • IPO prospectus
  • listed companyA company whose shares are officially admitted to trading on a stock exchange, so anyone can buy and sell them and the company must publish regular information.
  • stock exchangeAn organisation that runs a regulated market where shares and other securities are listed and traded, such as Borsa Istanbul or the New York Stock Exchange.
  • free floatThe part of a company's shares that can actually be traded on the market, excluding shares held by controlling owners, the state or other long-term holders.
  • shareOne of the equal units into which the ownership of a company is divided. If you own shares, you own a part of the company.
  • rights issueA way for a listed company to raise new money by offering existing shareholders the right to buy additional shares, usually at a discount and in proportion to what they already own.

This word in other fields

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

More terms: Stocks & Shares

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