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

Business

Scenario:

Our company's valuation has significantly increased over the past year. It's the right time to discuss options for expanding our capital base.

Response:

I agree completely. We should consider an Initial Public Offering to open up new avenues of capital and boost our company's profile.

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.