IPO – Initial Public Offering

What is an IPO?

An initial public offering (IPO) of shares of a company's stock for the first time.

When a company seeks to expand its business, it may offer shares of stock to the public to raise capital. Larger privately owned companies may also issue an IPO to begin public trading. When a company decides to go public, shares of the stock are listed on a stock exchange, where the IPO is first issued. To create an IPO, a company goes through the underwriting process to determine the prices of the shares. As of 2014, the largest IPO in history came from Alibaba Group Holding Ltd., which raised US$25 billion.(( http://www.wsj.com/articles/alibaba-ipo-biggest-in-history-as-bankers-exercise-green-shoe-option-1411334271 Retrieved 3 March 2015))

Any opinions, news, research, analyses, prices, other information, or links to third-party sites are provided as general market commentary and do not constitute investment advice. FXCM will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.