Initial public offering (IPO) is how private companies, for the first time, list their shares on major stock exchanges. These corporate enterprises intend to invite numerous small investors from the public to buy their financial securities. This enables the corporations to raise a relatively large sum of money as capital from these share purchasers. The companies’ funds from these potential investors allow them to maintain a steady cash flow and finance critical operations. The companies are then in a better position to exploit lucrative opportunities. However, by launching an initial…
Michael Saltzstein – A Brief Introduction to Initial Public Offering For New Companies
