IPO

Carve-Out (Equity Carve-Out)
A form of corporate restructuring in which a parent firm sells shares in a subsidiary through an initial public offering (IPO).
Flotation
Flotation refers to the process of launching a public company for the first time by inviting the public to subscribe for its shares. This process is also known as 'going public'.
Going Public
The process in the securities industry where a private company offers its shares to the public for the first time. This transition involves the shift of company ownership from a few private shareholders to a broader base of public shareholders and brings the company under the regulatory and legal requirements applicable to public companies.
Hot Issue
A newly issued stock that is in great public demand, often experiencing significant price increases at its initial public offering (IPO) due to high demand and limited availability of shares. Also known as a hot new issue.
Initial Public Offering (IPO)
An Initial Public Offering (IPO) is a corporation's first sale of stock to the public. This event marks a pivotal moment for a company, transforming it from a private entity to a publicly traded company.
Initial Public Offering (IPO)
The Initial Public Offering (IPO) is the first sale of shares by a private company to the public. IPOs are critical as they help companies raise capital and expand their operations, but setting the issue price correctly can be a challenging task.
Initial Public Offering (IPO)
The process through which a private company offers its shares to the public for the first time, transforming into a publicly traded company.
New Issue
A new issue refers to a stock or bond being offered to the public for the first time, the distribution of which is covered by Securities and Exchange Commission (SEC) rules. It usually pertains to initial public offerings (IPOs) by previously private companies but can also include additional stock or bond issues by companies that are already public.
Offering Date
The offering date is the specific date on which a distribution of stocks or bonds becomes available for sale to the public. It marks the first opportunity for investors to purchase the securities being offered by a company.
Offering Price
The offering price is the price per share at which new or secondary distribution of securities is offered for sale to the public. It is also commonly referred to as the public offering price.
Pathfinder Prospectus
A Pathfinder Prospectus is an outline document designed to test market reaction to the initial public offering (IPO) or flotation of a new company.
Primary Market
The market where new issues of securities are initially sold to investors. It contrasts with the secondary market where existing securities are traded among investors.
Public Offering
A public offering refers to the sale of equity shares or other financial instruments by an organization to the public to raise capital. This process typically involves issuing stock through an initial public offering (IPO).
Public Offering
A public offering involves inviting the public to apply for a new issue of shares or other securities, typically through advertisements in the national press and at a price fixed by the issuing company.
Public Offering
A public offering refers to the process where securities are offered for sale to the general public, typically through a stock exchange. This mechanism allows companies to raise equity capital from a broad investor base.
Red Herring
A 'Red Herring' is a preliminary prospectus filed by a company with the Securities and Exchange Commission (SEC), typically in connection with an initial public offering (IPO). It provides potential investors with crucial information about the company and its offering without disclosing the total number of shares and the price.
Sponsor in Financial Markets
A sponsor in financial markets plays a crucial role in the flotation of a company, acting as a guiding entity through the complex process of going public. They supervise the preparation of the prospectus and ensure the company comprehends the benefits and obligations associated with public listing.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.