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.

RELATED TERMS
  1. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts ...
  2. Secondary Offering

    1. The issuance of new stock for public sale from a company that ...
  3. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  4. Overtrading

    1. Excessive buying and selling of stocks by a broker on an investor's ...
  5. Share Capital

    Funds raised by issuing shares in return for cash or other considerations. ...
  6. Public Offering

    The sale of equity shares or other financial instruments by an ...
Related Articles
  1. Investing

    Days Payable Outstanding

    Days Payable Outstanding, or DPO, is an accounting measurement that tells the average number of days it takes a company to pay its suppliers and vendors. Days Payable Outstanding is widely used ...
  2. Investing

    How Can Companies Increase Market Share?

    Companies that increase their market share enjoy a competitive advantage. They receive better prices from suppliers, and they’re able to produce goods faster.
  3. Investing

    Why Companies Stay Private

    Many private companies prefer to stay private and find alternate sources of capital. Find out what firms have to gain by eschewing the windfall from a flashy IPO.
  4. Investing

    What is a Public Company?

    A public company has sold stock to the public through an initial public offering (IPO) and that stock is currently traded on a public stock exchange.
  5. Financial Advisor

    Broker-Dealer Industry 101: The Landscape

    Independent broker-dealers are a great choice for experienced, self-starter planners who have established practices.
  6. Managing Wealth

    The Pros And Cons Of A Company Going Public

    Small companies looking for growth often use an initial public offering to raise capital. But going public brings both advantages and disadvantages.
  7. Investing

    The Ups And Downs Of Initial Public Offerings

    Initial public offerings aren't the best option for every company. Consider these factors before "going public."
  8. Financial Advisor

    What's Involved in Customer Service?

    Customer service is the part of a business tasked with enhancing customer satisfaction.
  9. Financial Advisor

    What are the Different Types of Financial Advisors?

    There are two primary types of financial advisors: investment advisors and investment brokers, who work for broker-dealers.
  10. Investing

    Reverse Mergers: The Pros And Cons

    Reverse mergers can provide excellent opportunities for companies and investors, but there are still some downsides and risks.
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 >>
Hot Definitions
  1. Put Option

    An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security ...
  2. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  3. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  4. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  5. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  6. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
Trading Center