Questions tagged [ipo]
For personal finance questions related to a company's Initial Public Offering (IPO).
127
questions
70
votes
4
answers
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How does a public company issue new shares without diluting the value held by existing shareholders?
When a public company issues new shares, the total number of shares traded in a secondary market goes up. Assuming there is no change in the fundamentals of the company and the profitability, I would ...
- 803
38
votes
12
answers
18k
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I bought my first shares in life and they dropped 25% in a very short time. What to do?
I bought Coinbase stocks shortly after IPO. Now my loss at 25%, however, I am in the fortunate position of not being dependent on the invested money.
I would like to know in retrospect what I and ...
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16
votes
2
answers
664
views
Can a bunch of wealthy people force Facebook to go public?
Over at Dealbook, Sorkin writes in reference to Facebook:
Once more than 500 individuals or institutions own shares in Facebook, securities laws mandate that the company go public. Google staged an ...
- 8,733
15
votes
7
answers
5k
views
Why would a company prevent their employees from selling their pre-IPO equity?
I have heard and read that some non-publicly traded companies prevent their employees from selling their pre-IPO equity. Why would they have such a policy?
For example, from How to Sell Private ...
- 11.4k
15
votes
3
answers
8k
views
How do companies get money from being listed publicly? [duplicate]
How do companies get their money from being on the stock market?
I understand the reason a company will list is to raise capital.
Who gives them this money? The stock market is between buyers and ...
- 353
11
votes
2
answers
3k
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Why did the stock chart for Facebook's first trading day show an initial price of $42 when the IPO price was $38?
Facebook was widely reported as having an IPO price of $38. Yet, all the stock charts show Facebook shares priced at $42 until around 11:30 AM, than dropping to $40, and then only at 11:50 AM ...
- 111
11
votes
2
answers
1k
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How can I purchase Skype stock during the IPO?
Skype will be going IPO soon. How can I purchase their IPO stock?
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10
votes
3
answers
7k
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Must a company have a specific number of employees to do an IPO?
I'm interested in a job offering from a company that is going for an IPO (Initial Public Offering) in the next 6 months. It is rumored that once the IPO is done they will lay off a lot of employees ...
- 111
10
votes
4
answers
10k
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Do you have to be mega-rich to invest in companies pre-IPO?
Say there's a company which is known with certainty to be doing very well, but is privately held and is expected to go public within a few years. When such companies do investment rounds, are the only ...
- 2,585
10
votes
4
answers
581
views
From Facebook's perspective, was the fall in price after IPO actually an indication that it went well?
Please state if I'm incorrect but the whole point of a company doing a IPO is it wants to sell off a portion of itself in order to raise capital.
So in an IPO, I presume a company would aim to sell ...
- 6,080
10
votes
3
answers
1k
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What price can *I* buy IPO shares for?
This is motivated by the recent LinkedIn IPO, but is a general question.
LinkedIn IPOed around $45/share, climbed to $95/share by noon, topped out around $122 on the day, then closed around $94/share....
- 4,534
9
votes
2
answers
15k
views
How does stabilization work during an IPO?
When Facebook went public, the price didn't rise like a normal IPO. Normally, IPO's are priced so that there's a "pop" on the opening day. Instead the Facebook price fluctuated around the initial ...
- 470
9
votes
2
answers
10k
views
What is the P/E ratio for a company with negative earnings?
I know that PE ratio = (share price) / (net earnings per share), so does a company with a net loss mean they have a negative 1-year trailing PE? Is this surprising/unusual? What about for a company ...
- 775
9
votes
1
answer
2k
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I am a small retail investor. Can I invest in the Facebook IPO at the IPO price? [duplicate]
Possible Duplicate:
How can I purchase Skype stock during the IPO?
I've heard that only big institutional investors will be able to purchase Facebook shares at the Facebook IPO price. A small ...
- 195
8
votes
1
answer
2k
views
what's the difference between money raised in an ipo and its valuation?
I see news that says "company X wants to raise 3 million dollars at a valuation of 25 million dollars". How does the company get this 3 million? And is the valuation determined in part by how much ...
- 183
6
votes
6
answers
4k
views
Does an IPO mean a company is going public or is already public?
I know that an IPO means that a particular company, regardless of the country, is offering some quantity of their stocks to the public via the stock exchange.
I also assume (but not sure) that if they ...
- 97
6
votes
3
answers
982
views
How long can a company keep the money raised from IPO of its stocks?
Suppose a company issues its stocks.
Is it correct that there is no limit on the length of the time that
the company can keep the money raised from IPO of its stocks, unlike
for the debt of ...
- 5,883
6
votes
4
answers
694
views
Buying shares in employer's company during IPO
So the company that I work for has just put out an IPO to float on the share market. They have offered employee's the opportunity to purchase reserved shares before the offer goes public, up to $10 ...
- 163
6
votes
4
answers
31k
views
How much of a company goes public?
When a company goes public, does that mean that it is 100% public?
I just saw this infographic.
And after I saw the last pie divided I wondered if companies are actually give only a percentage of the ...
- 163
6
votes
1
answer
248
views
How to buy an IPO?
how does one buy an IPO? Are these only for institutional investors?
For example Dropbox IPO'd at $21, yet I don't think I had the opportunity to purchase at this rate.
I can buy on the stock exchange ...
- 203
6
votes
1
answer
1k
views
How is the opening-day price of a stock decided?
I have read the the IPO price of a stock is set by underwriters, who then sell to (typically) institutional and "special" investors. Once the stock is ready for the stock exchange, who decides what ...
- 4,534
6
votes
1
answer
2k
views
Implications of a Canadian company IPO having a dual TSX/NYSE stock listing?
As an exampe, Shopify will go public this upcoming May 26th, selling shares both on the TSX and the NYSE.
What are some of the main implications of this dual IPO, other than the fact that the ...
- 185
5
votes
1
answer
2k
views
Who gets how many shares when an IPO is oversubscribed?
Before an IPO, if investors ask for more shares than available, who gets how many shares and on which criteria?
- 225
5
votes
1
answer
2k
views
Can I buy IPO stock during the pre-market trading on the day of IPO?
Is it possible to buy a company's stock from 8 am to 9:30 am on the day of the company's IPO using an online brokerage that is? Or does the IPO stock only become available when the market opens at 9:...
- 51
5
votes
1
answer
1k
views
If I earn RSUs in a private company while living in California, and am no longer employed with the company at IPO, do I owe California taxes?
I'm employed at a private company in San Francisco. Part of my compensation is in RSUs, which are subject to the standard two vesting conditions for startup company stock: time, and the occurrence of ...
- 51
5
votes
1
answer
3k
views
How do I purchase stocks at a US IPO from overseas and as non-US citizen?
Can I still contact US brokers directly? I think you need to be a US resident to create an etrade.com account, right?
4
votes
3
answers
5k
views
Why would a stock opening price differ from the offering price?
I've noticed when a stock goes public (IPO) there is a stock offering price. The opening price on the first day of trading is sometimes higher/lower than the offering price. How can this be?
Am I ...
- 257
4
votes
1
answer
107
views
Why is money for SPAC raised even before they have found a potential company to merge with?
From what I have understood, A SPAC shell co. is setup and raises funds through an ipo thereby getting a period of 2 years to find a company they can merge with.
Is there a specific reason that it ...
- 43
4
votes
2
answers
984
views
How are stocks in an IPO allocated to investors
Example: the VRL Logistics IPO was subscribed 74x, how is it decided who gets shares and who doesnt?
This is assuming the number of those who applied at the highest price point is still greater than ...
- 206
4
votes
2
answers
165
views
Who are the sellers for the new public stocks?
There are lots of news for $BABA. It's current price as shown in the market is $68 but my broker put an announcement saying that its limit price is already $85. Then who are the sellers? The company ...
- 2,527
4
votes
1
answer
696
views
How to bet against IPOs?
Suppose one expects that IPOs, on the whole, show poor performance following the IPO (especially if one buys at the IPO), and wishes to bet against them.
This can be done by simply shorting every IPO ...
- 2,688
4
votes
1
answer
142
views
How can I establish myself to be an "accredited investor" relative to an IPO?
A US company with which I have an affiliation (I'm not an employee; I don't think the specifics of our relationship are relevant here) is preparing an IPO and there is a directed share program for a ...
- 13.4k
4
votes
1
answer
532
views
Where to find CSV or JSON data for publicly traded companies listed with their IPO date?
I found some of this data on Nasdaq's website, but a third of the IPO dates were listed as "n/a".
- 141
3
votes
2
answers
1k
views
Can an IPO be cancelled if not successful?
Let's say the Company C goes public using a Fixed Price Offering. It emits 10000 shares at 10 euros per share.
What happens if investors only subscribe to, let's say, 789 shares.
That gives a ...
- 247
3
votes
2
answers
603
views
Are the sellers selling pre-IPO shares over these websites legitimate or fake?
The websites which are selling block of Facebook,Twitter and other companies are given below with the explanation which I think is fake and is not legitimate.However I have contacted both of the firms ...
- 549
3
votes
3
answers
541
views
Can I participate in trading Facebook shares on their IPO day from any brokerage?
Can I participate in trading Facebook shares on their IPO day from any brokerage? Or might accessibility be limited? (I have some money in a Vanguard account and would like to use that if possible.) ...
- 775
3
votes
3
answers
54k
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How can I trade in U.S stock exchange living in India by choosing the broker in U.S? [closed]
I would appreciate if you kindly suggest an answer for this question.Anything incomplete in this question should be assumed.
And also please suggest which is the best brokerage firm/broker for this ...
- 549
3
votes
3
answers
3k
views
Should I invest in the pre-IPO company stock offered by my employer?
Should I invest money in the pre-IPO stocks soon to be offered by the company that I work for?
Is it wise to do this? What should I be thinking about? What are the risks?
I'm one of the first ...
- 676
3
votes
1
answer
4k
views
I don't live in America. How can I buy IPO stock of newly listed companies in the United States?
I'm Chinese, and I only know Firstrade, Scottrade and SogoTrade provide trading services in the Asia-Pacific region. However, they don't offer a way to buy IPO stock.
Is there any way for me to buy ...
- 163
3
votes
1
answer
570
views
Is this absurd stat a very unique (w.r.t the point in time in which it was calculated)? If not, are there people who do it?
Reading The Intelligent Investor I came across the following fact which was mind-blowing to me:
Finance professors Jay Ritter and William Schwert have shown that if you had spread a total of only $1,...
- 1,171
3
votes
1
answer
225
views
What does it mean for issuing corporations to "crank out expensive shares when markets are frothy ... and issue debt when markets are cheap"?
Can someone explain this excerpt from William Bernstein's article "The $100 Billion Oxymoron":
But don't feel too sorry for issuing corporations, they are
past-masters at cranking out expensive ...
- 33
3
votes
2
answers
148
views
How can I figure out when I'll be able to write call options of a stock?
I have a 200 Zynga shares. I'm wondering when I'll be able to write call options?
I see Groupon has options on it, but Pandora does not, so it seems it must not be just time.
3
votes
1
answer
297
views
Why can't I buy stocks during the beginning of an IPO at 9:30am? [duplicate]
I just noticed that I could not buy stocks of an IPO during the beginning to the trade at 9:30am. I tried NYSE:AMWL this morning. I can only buy the stock of an IPO several hours later. Does anyone ...
- 341
3
votes
1
answer
2k
views
How does a company get money by going public in an IPO?
If a company goes public, how does it get the money?
Will the underwriter pay the company once it goes for initial public offering (IPO)? Does that have anything to do with the valuation?
Say a ...
- 33
3
votes
1
answer
321
views
Differences in conditions on shares to private vs. public shareholders?
The Wikipedia page about IPOs says this:
A company selling shares is never required to repay the capital to its public investors.
Does that mean that stocks bought on the stock market are somehow ...
- 315
3
votes
1
answer
1k
views
What is the rule for time between an IPO filing and public exchange
What is the time between an IPO filing (thinking S-1 registration and having a lead underwriter) and being traded on the public exchanges?
slide 9 here shows a calendar http://www.slideshare.net/...
- 20.2k
3
votes
1
answer
224
views
What is a confidential IPO and how do you participate in it?
What is a confidential IPO and is general public allowed to participate in it?
Lately there have been a lot of confidential IPOs. A recent example being the Duck Creek Technologies IPO. I try to ...
- 169
3
votes
1
answer
251
views
When after a companys IPO date can I purchase shares?
There recently was an IPO, and when I tried to buy shares that day Scottrade prompted me with:
Error: Unable to enter the order because the symbol entered is not a
Listed or Nasdaq National ...
3
votes
1
answer
3k
views
Do post-IPO 'insider' stock lockup periods still apply if you separate from the company
Typically employees and other 'insiders' are subject to a lockup period after an initial public offering, along with blackout periods at certain points throughout the year to curb insider trading. ...
- 141
3
votes
2
answers
553
views
Where I can find the exact time when a certain company's stock will be available in the secondary market?
As mentioned in title, I want to know when we can buy an IPO stock in the secondary market. Such as I want to buy stock in Twitter as soon as it is provided in the secondary market.
I googled for a ...
- 163