initial public offering
First share sale
An initial public offering is a company's first sale of stock to the public, transforming it from privately held to publicly traded.
The abbreviation IPO is more common than the full phrase: The tech startup filed for an IPO.
Companies "go public" to raise capital, though this subjects them to regulatory disclosure requirements and shareholder pressure.
Traveling promotional presentation
- prospectusFormal investment disclosure document
- underwritingRisk evaluation and acceptance
- pricingEstablishing monetary amounts charged
- debutFirst public appearance
flotation · listing · ticker symbol · bell ringing · price range · red herring · registration · effective date
Units of company ownership
- stockGoods kept for sale
- ownershipLegal right of possession
- dilutionReduction in concentration
- capitalizationUsing big letters properly
common stock · preferred stock · equity stake · shareholder value · voting rights · stock options · majority stake · float
Securities trading marketplace
One who assumes financial risk
- bookrunnerPrimary securities offering coordinator
- syndicateCombined group pursuing shared interest
- co-managerShared leadership position
- due diligencePre-transaction reasonable care
fees · spread · stabilization · tombstone · mandate · settlement · allotment · commission
Those who commit capital
- institutional investorsOrganizations investing pooled funds
- retail investorsNon-institutional securities buyers
- allocationDistribution of shares
- subscriptionPaid recurring access
oversubscribed · demand · book orders · flipping · stagging · sentiment · hype · speculation
Total equity value
- price-to-earningsShare price divided by earnings
- comparablesSimilar things for comparison
- discounted cash flowTime-adjusted revenue valuation
- unicornMythical one-horned horse
decacorn · premium · discount · pre-money · multiple · fair value
roadshow
Traveling promotional presentation
- prospectusFormal investment disclosure document
- underwritingRisk evaluation and acceptance
- pricingEstablishing monetary amounts charged
debut · flotation · listing · ticker symbol · bell ringing · price range · red herring · registration · effective date · market entry
shares
Units of company ownership
capitalization · common stock · preferred stock · equity stake · shareholder value · voting rights · stock options · majority stake · float · outstanding shares
stock exchange
Securities trading marketplace
ticker · opening bell · volume · liquidity · market maker
underwriter
One who assumes financial risk
- bookrunnerPrimary securities offering coordinator
- syndicateCombined group pursuing shared interest
- co-managerShared leadership position
due diligence · fees · spread · stabilization · tombstone · mandate · settlement · allotment · commission
investors
Those who commit capital
- institutional investorsOrganizations investing pooled funds
- retail investorsNon-institutional securities buyers
- allocationDistribution of shares
subscription · oversubscribed · demand · book orders · flipping · stagging · sentiment · hype · speculation
market cap
Total equity value
- price-to-earningsShare price divided by earnings
- comparablesSimilar things for comparison
- discounted cash flowTime-adjusted revenue valuation
unicorn · decacorn · premium · discount · pre-money · multiple · fair value
- corporate lawincorporation, shareholders, corporate governance, limited liability, shares
- Securities IssuanceIPO, issuance, underwriter, prospectus, bond issue
- tradingbid, buy, ask, sell, trading
- founding eventssigning, declaration, charter, constitution, incorporation
- SEC10-K, commissioner, commissioners, chair, chairman
initial public offeringangel investment
Private funding for startups
initial public offeringleveraged buyout
Debt-funded corporate acquisition
initial public offeringstock buyback
Corporation reacquiring its shares
initial, public, offering, initiate, initiated, initiating, initiation, initiative, initially