Direct Public Offering - DPO

AAA

DEFINITION of 'Direct Public Offering - DPO'

When a company raises capital by marketing its shares directly to its own customers, employees, suppliers, distributors and friends in the community. DPOs are an alternative to underwritten public offerings by securities broker-dealer firms where a company's shares are sold to the broker's customers and prospects.

INVESTOPEDIA EXPLAINS 'Direct Public Offering - DPO'

Direct public offerings are considerably less expensive than traditional underwritten offerings. Additionally, they don't have the restrictions that are usually associated with bank and venture capital financing. On the other hand, a DPO will typically raise much less than a traditional offering.

RELATED TERMS
  1. Series 82

    An exam administered by the Financial Industry Regulatory Authority ...
  2. Spot Secondary

    The sale of a previously issued security that does not require ...
  3. Crossover Investor

    An investor who invests prior to, during and after a company's ...
  4. Primary Offering

    The first of issuance of stock for public sale from a private ...
  5. New Fund Offer - NFO

    A security offering in which investors may purchase units of ...
  6. Follow-On Offering

    An issue of shares of stock that comes after a company has already ...
Related Articles
  1. Fundamental Analysis

    Interpreting A Company's IPO Prospectus ...

  2. Retirement

    IPO Basics Tutorial

  3. In 2014, stock markets traded at record levels and the US IPO market enjoyed activity not seen since the 2000 tech bubble. Here is a snapshot of some of the year’s most successful IPOs.
    Investing News

    5 IPOs That Broke The Markets In 2014

  4. Investing Basics

    Alibaba IPO: Why List In the U.S.?

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center