Learning About Shares: IPO - just an abbreviation for raising piles of cash

Sunday 6 June 2004

Q. Barbara asks: There's a lot in the news at the moment about companies conducting IPOs. What does it actually mean when a company offers shares for sale in an initial public offering or IPO? Should I be applying for shares in an IPO?

A.Dan Dividend responds: As you've observed, Barbara, IPO is one hot abbreviation at the moment!

Kiwi companies that have re

By The Landlord

cently completed IPOs include Kingfish, Mike Pero Mortgages, Just Water International and Feltex Carpets. Pumpkin Patch's IPO is about to close as we write this article and a handful of other companies also have IPOs open.

An IPO is a company's first-ever sale of shares to the public. In many cases, it's the first time people outside the company have the opportunity to buy its shares. That's why a company is often said to be going public or floating when it conducts an IPO.

Offering shares for sale to the public is just one of several options companies have to raise funds for growth and expansion.


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