Initial public offering

Initial public offering

Referring to the process of transforming a private company into a public company by selling shares of its stock to the general public for the first time on a securities exchange.

Industry: Banking

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Initial public offering

Float

Banking; Initial public offering

The number of shares of a company that are available for trading by the public. It does not include those shares that are closely held by officers, directors and other so-called insiders.

Global shares

Banking; Initial public offering

The shares that are part of an offering going directly to international investors. This is usually done with the larger deals and underwriters.

Green shoe

Banking; Initial public offering

Often referred to as the 'overallotment'. An amount of shares, generally no greater than 15% of the orignal shares issued, that is reserved for issuance at the underwriters option at the original ...

Gross spread

Banking; Initial public offering

The difference between the offering price and the net proceeds given to the company. Those fees include such items as selling concession (where the brokers get their commissions from), manager's ...

A person who serves on a company's board of directors. This person is responsible for keeping the company on track with its current goals and is open to personal liability if sued by shareholders or ...

Disclosure

Banking; Initial public offering

A Company must report all of its management practices, financial statements and legal involvements that are pertinent to an investment decision. This process assures the investor that all such ...

Discounted secondary

Banking; Initial public offering

Secondarys that get priced at a discount to the previous trade. This is done solely as a pre-arranged transaction between the underwriter and the issuer. It is generally thought upon to be necessary ...