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.

  1. Series 82

    An exam administered by the Financial Industry Regulatory Authority ...
  2. Dutch Auction

    1. A public offering auction structure in which the price of ...
  3. Follow-On Offering

    An issue of shares of stock that comes after a company has already ...
  4. Public Offering Price - POP

    The price at which new issues of stock are offered to the public ...
  5. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  6. Underwriting

    1. The process by which investment bankers raise investment capital ...
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  1. When did Facebook go public?

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  3. Who do hedge funds lend money to?

    Many traditional lenders and banks are failing to provide loans. In their absence, hedge funds have begun to fill the gap. ... Read Full Answer >>
  4. Can mutual funds invest in IPOs?

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