Sign up
Log in

Definition of an IPO​

An initial public offering, or IPO, generally refers to when a company first sells its shares to the public. Here is an introduction about IPO.​

An initial public offering, or IPO, generally refers to when a company first sells its shares to the public. In an IPO, a privately owned company lists its shares on a stock exchange like NYSE Exchange and Nasdaq Exchange, making them available for purchase by the general public.​

In essence, an IPO is the process by which a private company issues its first shares of stock for public sale. For this reason, the IPO process is sometimes referred to as "going public."​

Startup companies or companies that have been in business for decades can decide to go public through an IPO. Companies typically issue an IPO to raise capital to pay off debts, fund growth initiatives, raise their public profile, or to allow company insiders to diversify their holdings or create liquidity by selling all or a portion of their private shares as part of the IPO.​

In an IPO, after a company decides to "go public," it chooses a lead underwriter to help with the securities registration process and distribution of the shares to the public. The lead underwriter then assembles a group of investment banks and broker dealers that is responsible for selling shares of the IPO to institutional and individual investors.​

Webull Malaysia do not support IPO subscriptions for MY and US markets. However, you may trade them once they are listed on the exchange.

0
0
0
All investments involve risks and are not suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment. No content should be construed as investment advice or recommendation, or an offer or solicitation, to deal in any investment product.
Lesson List
1
What is a Cash Flow Statement?
2
Trading Rules for China A-Shares
3
How Do Stock Exchanges Work?
4
What are Stocks?
Definition of an IPO​
6
Why Would A Company Pay Dividends?​
7
What is the Stock Market?
8
Introduction to China A-Shares and A-Share ETFs
9
Benefits of 24-Hour Trading
10
What Tools Can Help You Trade During Earnings Season?
11
Stock Indices
12
Activate Your China Trading Account
13
Order Types in the Hong Kong (HK) Stock Market
14
24-Hour Trading
15
Activate Your Hong Kong Trading Account
16
Fractional Shares in Corporate Actions
17
Trading hours of the Hong Kong stock market
18
Hong Kong Stock Markets Indices
No content on the Webull website shall be considered a recommendation or solicitation for the purchase or sale of securities, options or other investment products. All information and data on the website is for reference only and no historical data shall be considered as the basis for judging future trends.