Go Public
To 'go public' means a company gets listed on the stock market by launching an Initial Public Offering (IPO). This process involves receiving approval from existing stakeholders to issue shares to the public. The price of the IPO is determined through two methods:1. Book Building: The price is determined based on demand from institutional investors.2. Fixed Price: The company sets a predetermined price for the shares.Once the price is decided, the shares are offered on the primary market. Not everyone who applies for the IPO may receive shares, as allotment is done based on demand. After the shares are issued, the company transitions from the 'go public' stage to becoming a publicly traded company.
Related Terms
NFO
A New Fund Offer (NFO) is the initial launch of a mutual fund scheme, giving...
Free Float Market Capitalization
Free-float market capitalization (FFM) is a valuation method that calculates a company's market value using...
Derivatives Trading
Derivatives trading involves buying and selling contracts like futures, options, swaps, and forwards. These contracts...
Balance Sheet
A balance sheet is a financial statement that provides a snapshot of a company's financial...
52 Week High
A 52-week high is the peak price of a stock or ETF over the past...
Leverage In Stock Market
Leverage is a loan provided by a broker, enabling traders to hold larger positions with...
