Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [ipo]

For personal finance questions related to a company's Initial Public Offering (IPO).

127 questions
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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 expect that the share price of the existing…
Mozan Sykol
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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 other Coinbase stock buyers did wrong. What are the…
Sybil
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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 I.P.O. in part because it hit that same…
Michael Pryor
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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 Company Stock (mirror): A sale of private stock must…
Franck Dernoncourt
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3 answers

How do companies get money from being listed publicly?

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 sellers themselves right ? So how do companies get…
Jonathan
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2 answers

How can I purchase Skype stock during the IPO?

Skype will be going IPO soon. How can I purchase their IPO stock?
Sheehan Alam
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2 answers

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 beginning to trade at $38. Why the initial higher…
IsaacZ
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3 answers

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. Motley Fool says additionally that the stock…
Fixee
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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 because there is a requirement for IPO/NASDAQ to…
Nuh
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4 answers

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 people permitted to participate those with high…
temporary_user_name
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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 their stock at as high a price as is possible…
Joe.E
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9
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2 answers

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 price and once support was removed, the price fell…
Knox
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1 answer

I am a small retail investor. Can I invest in the Facebook IPO at the IPO price?

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 player like me (I've got an account with Charles…
samthebrand
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2 answers

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 IPO? This was prompted by Splunk's IPO;…
xyz
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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 many it wants to raise? If so: how?
Adam
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