Initial public offering

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Revision as of 16:53, 5 August 2005 by Rhody Trader (Talk | contribs)
The first issue and sale of stock by a company to the public.

The actual process of selling the stock is generally done by an underwriter and often involves a road show and requires a prospectus. The sale is made at the offering price, then starts actual trade at the opening price.

Insiders are not allowed to sell their stock during the lockup period.

Also referred to as going public.