What is an IPO?

IPO pic
IPO
Image: investopedia.com

With more than two decades of experience in his field, James Kasim has served in various executive-level corporate finance and capital markets positions. Prior to assuming his current role in capital markets, James Kasim held multiple executive position with firms in California, including Pacific Office Properties Trust, where he helped manage the launch of the company’s initial public offering (IPO).

The term IPO refers to the first time a business’s stock is sold to the general public. When a company issues an IPO, it becomes “public” and makes a portion of its shares available for purchase by anyone interested in investing. Conversely, a private company has power over which investments it accepts or denies from interested parties.

Though a public company may not regulate who purchases its stocks, there are many benefits to going public. These perks include better rates for issued debts, the ability to easily generate more stocks in the face of high demand, and a chance to garner the interest of top talent. Overall, companies that issue an IPO have greater potential to raise funds and then use them to reinvest in important areas of the business, such as growth or infrastructure.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s