What is the IPO process?

The Initial Public Offering IPO Process is where a previously unlisted company sells new or existing securities and offers them to the public for the first time.

Should you buy a company after an IPO?

For the common investor, purchasing directly into an IPO is a difficult process, but soon after an IPO, a company's shares are released for the general public to buy and sell. If you believe in a company after your research, it may be beneficial to get in on a growing company when the shares are new.

How are IPO shares priced?

IPO shares of a company are priced through underwriting due diligence. When a company goes public, the previously owned private share ownership converts to public ownership, and the existing private shareholders’ shares become worth the public trading price.

What is considered a successful IPO?

Market Capitalization: The IPO is considered to be successful if the company’s market capitalization is equal to or greater than the market capitalization of industry competitors within 30 days of the initial public offering. Otherwise, the performance of the IPO is in question.