IPO
Going public event
An IPO, or initial public offering, is a company's first sale of stock to the public.
Before an IPO, a company is privately held; afterward, shares trade on a stock exchange.
Companies "go public" to raise capital, though founders and early investors often use IPOs to cash out.
The tech startup's IPO valued it at three billion dollars.
Ability to stay afloat
- listingRecorded item in catalog
- offeringSomething presented or given
- debutFirst public appearance
- launchSet into motion
issuance · roadshow · prospectus · underwriting · registration · filing · pricing · allocation
Electronic securities exchange
- NYSELargest equities market
- exchangeMutual giving and receiving
- bourseSecurities trading venue
- tickerInformal term for heart
trading · aftermarket · liquidity · volume
Derivative from a parent
- privatizationState sells public assets
- carve-outExempted portion or provision
- divestitureDisposal of assets
- subsidiaryOf lesser importance
startup · unicorn · founder · exit · capitalization
Demand exceeds availability
- allocationDistribution of shares
- flippingTurning over rapidly
- lock-upShort-term detention facility
- shareholderEquity owner in corporation
stockholder · subscriber · participation · demand · sentiment · appetite · tranche
Establishing monetary amounts charged
- valuationAssessment of monetary worth
- multipleConsisting of many parts
- dilutionReduction in concentration
- premiumAdded cost for better
discount · pop · underpriced · overpriced
flotation
Ability to stay afloat
launch · issuance · roadshow · prospectus · underwriting · registration · filing · pricing · allocation · syndicate
NASDAQ
Electronic securities exchange
ticker · trading · aftermarket · liquidity · volume
spin-off
Derivative from a parent
- privatizationState sells public assets
- carve-outExempted portion or provision
- divestitureDisposal of assets
subsidiary · startup · unicorn · founder · exit · capitalization
oversubscribed
Demand exceeds availability
- allocationDistribution of shares
- flippingTurning over rapidly
- lock-upShort-term detention facility
shareholder · stockholder · subscriber · participation · demand · sentiment · appetite · tranche
pricing
Establishing monetary amounts charged
- valuationAssessment of monetary worth
- multipleConsisting of many parts
- dilutionReduction in concentration
premium · discount · pop · underpriced · overpriced
- investingstocks, stock, bonds, investing, investor
- Business AcronymsSKU, UPC, CEO, COO, POS
- financial instrumentspromissory notes, check, bond fund, cheque, checks
- startup jargonMVP, fail fast, scaling, unicorn, disrupt
- equity raisingpublic offering, equity funding, funding round, Series A, seed funding
- financial lawsecurities law, insurance law, SEC, Dodd-Frank, insider trading
Ownership conferring business control
Withdrawing from public markets
delisting · privatization · leveraged buyout · buyout · LBO
IPOliquidation
Selling assets for cash
dissolution · bankruptcy · Chapter 7 · wind-down · acquisition