initial-public-offering

Vocabulary Word

Definition

An 'Initial-Public-Offering' (IPO) is a major event for a private company. It's when the company first sells shares to the public and becomes a publicly traded company. This move can raise lots of money for the company.

Examples in Different Contexts

In corporate finance, an IPO is a milestone that can provide a company with capital for expansion. A chief financial officer (CFO) might explain, 'The proceeds from the IPO will finance our international growth plans.'

Practice Scenarios

Investment

Scenario:

The technology sector is booming, and we've seen some promising startups emerge. They're raising the bar and creating interesting dynamics in the market.

Response:

Absolutely, we should keep an eye on these startups, especially if they go for an Initial Public Offering. It could be a very lucrative opening for our portfolios.

Tech

Scenario:

With the new round of funding, we're attracting a lot of stakeholders. The question now is how we leverage this to accelerate our growth.

Response:

Right, with the attention we're getting, it might be the perfect time for an Initial Public Offering to accelerate our expansion plans.