HOW IPOs WORK
THE SECRET TO A COMPANY’S GROWTH
1. COMPANIES HIRE AN INVESTMENT BANK TO ASSESS THE PRICE PER SHARE, TYPES OF SECURITIES AND THEIR IPO GOALS.
2. THE INVESTMENT BANK ACTS AS A BROKER BETWEEN THE COMPANY AND THE STOCK EXCHANGE TO HELP THEM SELL INITIAL SHARES.
3. A DATE IS SET FOR THE IPO (INITIAL PUBLIC OFFERING).
4. COMPANIES RECEIVE MONEY FROM THE IPO AND USE IT TO GROW THE BUSINESS AND GENERATE MORE REVENUE.
5. INITIAL INVESTORS SELL SHARES FOR PROFIT!
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