ShmoopTube

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And finance allah shmoop What is an i p o

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Well this is a hippo and it has nothing to

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do with an ipo Auras Normal humans pronounce it if

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both well actually most people just spell it out I

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po It stands for initial public offering In the three

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words tell the story and i pl refers to a

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company who's raising money by selling shares of itself to

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the public for the first time a maiden voyage in

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public funding if you will Whatever dot com has forty

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million shares outstanding after three private rounds with venture capitalists

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and private investors it wants to raise money to go

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big internationally And for the first time it will offer

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shares to joe and jill public And that means that

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all of it shares will be tradable publicly on the

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open market like on nasdaq or the new york stock

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exchange That is the insiders early investors founders et cetera

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will be able to just call their broker at schwab

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or fidelity or wherever and sell their shares get liquid

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and buy themselves a maserati because it's not what everyone

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does after a nice meal So whatever dot com sells

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ten million shares a twelve bucks each to raise one

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hundred twenty million dollars which they can spend to build

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out offices all over the world So yeah that's an

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ai po and that's Why a company generally wants to

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make shares available to the public because once you've made

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an initial public offering and you make money off the

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sales of your stock you khun by as many hippos

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as you like and just remember to feed them three

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times a day they get Cranky if they go too 00:01:35.158 --> [endTime] long in between No

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