How To Tell An IPO Blockbuster From An IPO Flop

over 3 years ago9 mins

How To Tell An IPO Blockbuster From An IPO Flop

What Are IPOs?

Why you should care about listings

2 mins

Initial Public Offerings (IPOs) drive the financial world giddy: with “beauty contests” and rumors galore, they’re the closest we’ve got to a showbiz event. IPOs are where shares in a company are listed on a stock market for the first time, allowing the average investor (like you or me) to buy a piece of their favorite firms.

The actual process of selling shares on the stock market is often called “floating”, and it’s got a really long history – the first flotation was the Dutch East India Company in the early 1600s.

Why do companies float? As companies grow, they often need to raise funds to invest in things like opening a new factory or hiring extra people. They can either borrow money from a bank (raising debt) or sell a portion of the company’s ownership (known as its equity) t

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