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5 votes
Accepted

Does the owner of a company effectively "give up" a portion of his company on IPO?

I’m effectively “giving up” that chunk of the pie because the money raised through an IPO goes to the company This is true, which is why an IPO is a method of raising capital for the company to use. ...
Stan H's user avatar
  • 7,551
1 vote

Does the owner of a company effectively "give up" a portion of his company on IPO?

Let’s say you are the 100% owner of a company worth $1,000,000. You sell shares to the public for $1,000,000. The company is the same except there is $1,000,000 in its bank account, so it is now worth ...
gnasher729's user avatar
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1 vote

Is IPO price pre determined or is determined on the IPO listing date?

The "public" in the IPO (Initial Public Offering) is not retail investors, it's institutions. In the IPO process, the purchasers need to commit to large amounts of shares and the price is ...
littleadv's user avatar
  • 176k
1 vote

Is IPO price pre determined or is determined on the IPO listing date?

The initial price is determined a few days or a few weeks before the IPO date. There is an art and a science to setting the initial value. They want all the shares linked to the IPO to sell, they want ...
mhoran_psprep's user avatar

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