Direct Public Offering - DPO

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.

BREAKING DOWN '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.

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RELATED FAQS
  1. When do analysts use days payable outstanding (DPO) in their company evaluations?

    Discover the circumstances that might lead traders or analysts to particularly scrutinize a company's days payable outstanding ... Read Answer >>
  2. What is a common number for days payable outstanding? (DPO)?

    Understand the accounting term, days payable outstanding (DPO), and learn what the most common time period is for a company ... Read Answer >>
  3. What are some factors that affect a company's days payable outstanding (DPO)?

    Discover what factors affect a company's days payable outstanding (DPO) and how a company and its vendors interpret the result ... Read Answer >>
  4. What is industry etiquette for number of days payable outstanding (DPO)?

    Read about what constitutes an allowable threshold for days payable outstanding, and why creditors and debtors often have ... Read Answer >>
  5. Why is the Detrended Price Oscillator (DPO) important for analysts and traders?

    Find out how traders and analysts use the detrended price oscillator to locate overbought and oversold positions by eliminating ... Read Answer >>
  6. What is the Detrended Price Oscillator (DPO) formula and how is it calculated?

    See how analysts and traders attempt to estimate the length and depth of current price cycles through the Detrended Price ... Read Answer >>
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