Initial Public Offerings (IPOs) 

An IPO is a company’s first sale of stock to the public; it is also called a primary offering. Smaller companies issue IPOs when they are seeking capital to expand; larger companies may issue them when they want to become publicly traded.

The IPO process is controlled by the underwriters and the company issuing the shares. The underwriter helps the issuing company determine the timing, the price and the number of shares involved in the IPO. Because IPOs are speculative and inherently risky, firms must consider if the IPO is appropriate for individual investors in light of their income and net worth, investment objectives, other securities holdings, risk tolerance, and other factors. All of the relevant information regarding the company and the IPO is found in the prospectus.

Helpful IPO Link:

SEC Website