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

Tranche

Banking; Initial public offering

An allocation made to a geographic region. Traditional references are for overseas allocations through an 'international tranche' but there may be various sub-tranches to different regions around the ...

Treasury stock

Banking; Initial public offering

Stock a company issues then buys back, at which time it is placed in the company's treasury, where it earns no dividends and carries no voting priviledges.

Underwriter

Banking; Initial public offering

Investment bankers that assume the risk of buying new issues of securities from a corporation and distributes them to the public. The underwriter will profit from the fees generated by the offering ...

Valuation

Banking; Initial public offering

The initial measure of what a company expecting to come public is worth that is used for consideration of whether the company is fairly valued. Depending on market conditions, this value can be ...

Venture capital

Banking; Initial public offering

Often referred to as 'seed money'. This is money loaned to the company in its earliest stages of development. Security for that money will carry a high price tag, at the company's expense, as the ...

Volatility

Banking; Initial public offering

Greater than normal movement in the price of a stock from its high and low. This term usually refers to intraday moves but can also apply to weekly price movements or longer periods.

Warrant

Banking; Initial public offering

A company issued certificate that represents an option to buy a certain number of stock shares at a specific price before a predetermined date. Having a value of its own, it can be traded on the open ...