Initial Offering Date

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Dictionary Says

Definition of 'Initial Offering Date '

1. The date at which a security is first made available for public purchase. The initial offering date is set during the underwriting process. For stocks, this marks the date of the initial public offering and the beginning of a quiet period, when insiders and underwriters cannot issue earnings forecasts or research reports on the company. This term also refers to the initial offering of shares in other assets, such as mutual funds and unit investment trusts (UITs).


Investopedia Says

Investopedia explains 'Initial Offering Date '

Historically, stocks have been underpriced leading up to the initial offering date. This can create pent-up demand for shares on the first day of trading, and creates profit potential for those who can subscribe to the issue before the initial offering date. However, buying on the date of offering can be very risky. Because only a small percentage of the outstanding shares (typically less than 25%) are eligible to trade on the first day, share prices can become volatile and more difficult to anticipate.

This same problem does not typically occur with shares of most other assets. Mutual fund or UIT shares are based on a portfolio of established securities with values that are already known in the market.
Search results for

'Initial Offering Date '

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    ... The coupon rate on a bond is not finalized until the offering date, and the exact
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    ... because of the second condition listed above, a company cannot have options traded
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    ... an additional 4.7 million shares in the initial public offering. ... proceeds to the
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  • Investing In A Unit Investment Trust

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    ... Like closed-end funds, UITs are issued via an initial public offering (IPO ... a costs
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  • Greenshoe Options: An IPO's Best Friend

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    ... million shares during its initial public offering, because investors ... supply by
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  • Series 63 Study Guide - Securities - Other Definitions ...

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    ... Registration Records Along with the initial registration statement, offerings must
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  • Series 66 Study Guide - Regulation of Securities - Other ...

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    ... Registration records - The USA specifically states that, along with the initial
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  • A Primer On Preferred Stocks

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    ... be called by the issuer after a certain date. ... higher rates than what the market is
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