initial public offerings (ipos)

How Does the IPO Process Work?

The IPO process involves several steps:
Appointment of Underwriters: Companies hire investment banks to act as underwriters. These underwriters help price the IPO, buy the shares from the company, and sell them to the public.
Regulatory Filings: The company must file a registration statement with the Securities and Exchange Commission (SEC) in the U.S. This document provides detailed information about the company's business, finances, and risks.
Roadshow: The company and its underwriters go on a roadshow to pitch the IPO to potential investors.
Pricing: Based on investor feedback, the final price of the shares is determined.
Trading Begins: Once the shares are priced, they begin trading on a public exchange such as the New York Stock Exchange (NYSE) or NASDAQ.

Frequently asked queries:

Relevant Topics