What is an IPO?
Simply put, an IPO is a company’s first sale of it’s stock/share to the public. The provisions typically offered in an IPO belong to young, small companies (not always the case) that are seeking external equity capital along with a public market for their stocks. The potential of greater earnings for the investors in IPO also comes it its own risk factor that the investor needs to be prepared for. Investment Companies and their IPOs (closed end funds) usually have underwriting fees, that acts as a load for buyers.
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