{"id":655,"date":"2011-05-20T07:00:41","date_gmt":"2011-05-20T12:00:41","guid":{"rendered":"http:\/\/www.patheos.com\/blogs\/faithandfinance\/?p=655"},"modified":"2011-05-20T07:00:41","modified_gmt":"2011-05-20T12:00:41","slug":"what-is-an-ipo","status":"publish","type":"post","link":"https:\/\/www.patheos.com\/blogs\/faithandfinance\/2011\/05\/20\/what-is-an-ipo\/","title":{"rendered":"What is an IPO?"},"content":{"rendered":"\n<\/head>

In the world of investing<\/a>, the term IPO gets tossed around quite often.\u00a0 Those letters stand for Initial Public Offering. <\/em>It basically means that a company is offering shares of its stock to the public for the first time.\u00a0 This is why the term IPO is often used when talking about a company that is \u2018going public.\u2019<\/p>\n

Private vs. Public Companies<\/h2>\n

The basic definition between the two is centered on who owns the shares of stock.\u00a0 In a private company, the owners do not have to sell their shares to anyone who asks.\u00a0 When a company goes public, they provide a certain number of shares to be purchased by anyone willing to invest.\u00a0 Public companies use an IPO as a time to generate cash, which can be a better alternative to borrowing in many cases.<\/p>\n

A company might have an IPO to raise money for expansion, debt reduction, or other general growth reasons.\u00a0 If a company is privately held, they might consider going public if the owners want to release their control and make a nice profit from the sale of stocks.<\/p>\n

Another benefit of going public is the free publicity that comes with it.\u00a0 With social media and mainstream news covering the financial area closely today, there\u2019s a good chance that you\u2019ll be the top story for a day or two.\u00a0 Who doesn\u2019t like free press?<\/p>\n

Should You Invest in an IPO?<\/h2>\n

The biggest concern with investing in an IPO is that the firm probably has a relatively short history behind its books.\u00a0 If you don\u2019t have a good grasp on how a company is valued<\/a>, you might be buying into a company that is overvalued and add much more risk to your portfolio.<\/p>\n

The hype behind an IPO might lead investors to pursue a stock that they don\u2019t understand fully.\u00a0 Your reason to invest should be founded on the fact that it\u2019s an exciting IPO \u2013 it should be based on the soundness of the company.<\/p>\n

Finding an IPO<\/h2>\n

If you want to stay up to date on the newest information about companies going public, you can view an IPO showcase on the New York Stock Exchange\u2019s website.<\/p>\n

Here\u2019s the link to view the most recent IPOs<\/a>.<\/p>\n

I don\u2019t know if I\u2019ll be purchasing any stock for any upcoming IPOs, but it\u2019s definitely interesting to know where I can look for the newest offerings.<\/strong><\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"

In the world of investing, the term IPO gets tossed around quite often.\u00a0 Those letters stand for Initial Public Offering. It basically means that a company is offering shares of its stock to the public for the first time.\u00a0 This is why the term IPO is often used when talking about a company that is […]<\/p>\n","protected":false},"author":2551,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[],"class_list":["post-655","post","type-post","status-publish","format-standard","hentry","category-investing"],"yoast_head":"\nWhat is an IPO?<\/title>\n<meta name=\"description\" content=\"In the world of investing, the term IPO gets tossed around quite often.\u00a0 Those letters stand for Initial Public Offering. 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