Initial public offering facts for kids
An initial public offering (IPO) or stock market launch is a type of public offering. A public offering is any tradable asset that is offered to the public. In an initial public offering, shares of stock in a company are sold to the general public, on a securities exchange, for the first time. Through this process, a private company transforms into a public company. Initial public offerings are used by companies to raise money for expansion and to become publicly traded enterprises. A company selling shares is never required to repay the money to the people who buy them.
Before 2009, the United States was the leading issuer of IPOs in terms of total value. Since that time, however, China (Shanghai, Shenzhen and Hong Kong) has been the leading issuer. It raised US$73 billion up to the end of November 2011. This was almost double the amount of money raised on the New York Stock Exchange and NASDAQ combined.
Initial public offering Facts for Kids. Kiddle Encyclopedia.