Initial public offering

In financial markets, an initial public offering (IPO) is the first sale of a company's common shares to public investors. The company will usually issue only primary shares, but may also sell secondary shares. Typically, a company will hire an investment banker to underwrite the offering and a corporate lawyer to assist in the drafting of the prospectus.

Related Topics:
Financial markets - Common - Shares - Primary shares - Secondary shares - Investment banker - Underwrite - Lawyer - Prospectus

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The sale of stock is overseen by financial regulators and where relevant by a stock exchange. It is usually a requirement that disclosure of the financial situation and prospects of a company be made to prospective investors.

Related Topics:
Financial regulators - Stock exchange - Financial - Investors

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In the United States, the U.S. Securities and Exchange Commission (SEC) regulates the securities markets and, by extension, enforces the legal procedures governing IPOs. The law governing IPOs in the United States includes primarily the Securities Act of 1933, the regulations issued by the SEC, and the various state "Blue Sky Laws".

Related Topics:
United States - U.S. Securities and Exchange Commission - Securities - Securities Act of 1933 - Blue Sky Laws

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