Allotment

And finance allah shmoop What is an i p o

Well this is a hippo and it has nothing to

do with an ipo Auras Normal humans pronounce it if

both well actually most people just spell it out I

po It stands for initial public offering In the three

words tell the story and i pl refers to a

company who's raising money by selling shares of itself to

the public for the first time a maiden voyage in

public funding if you will Whatever dot com has forty

million shares outstanding after three private rounds with venture capitalists

and private investors it wants to raise money to go

big internationally And for the first time it will offer

shares to joe and jill public And that means that

all of it shares will be tradable publicly on the

open market like on nasdaq or the new york stock

exchange That is the insiders early investors founders et cetera

will be able to just call their broker at schwab

or fidelity or wherever and sell their shares get liquid

and buy themselves a maserati because it's not what everyone

does after a nice meal So whatever dot com sells

ten million shares a twelve bucks each to raise one

hundred twenty million dollars which they can spend to build

out offices all over the world So yeah that's an

ai po and that's Why a company generally wants to

make shares available to the public because once you've made

an initial public offering and you make money off the

sales of your stock you khun by as many hippos

as you like and just remember to feed them three

times a day they get Cranky if they go too 00:01:35.158 --> [endTime] long in between No