1. IPO Basics: Introduction
  2. IPO Basics: What Is An IPO?
  3. IPO Basics: Getting In On An IPO
  4. IPO Basics: Don't Just Jump In
  5. IPO Basics: Tracking Stocks
  6. IPO Basics: Conclusion

The term initial public offering (IPO) has been a buzzword on Wall Street and among investors for decades, and especially since the tech boom of the 1990’s. Back then, it seemed you couldn't go a day without hearing about a dozen new dotcom millionaires in Silicon Valley who were cashing in on their latest IPO.

After the Great Recession following the 2008 financial crisis, IPOs ground to a halt, and for some years afterwards, new listings were rare. But since 2011 the number of IPOs has been steadily rising along with economic optimism. Lately, the IPO buzz has been around the so-called unicorns, startup companies that have reached private valuations of more than $1 billion, like Uber and AirBnB. Will these companies go public via an IPO or stay private? Will the market value these companies as highly as anticipated? Will these startup founders get fantastically rich overnight?

This tutorial will answer what an IPO is along with these other questions and, importantly, help you decide if an IPO is an appropriate investment for your portfolio – if you can get your hands on one!


IPO Basics: What Is An IPO?
Related Articles
  1. Insights

    Why Are Companies Taking Longer To Go Public?

    Learn why private companies are waiting longer to have their IPOs. Understand why it may be more advantageous for a company to stay private.
  2. Investing

    4 Reasons for the IPO Market Slowdown in 2016 (IPO)

    Pay attention to the length of time a company waits before going public and whether the prolonged period brings excessive valuation.
  3. Insurance

    Initial Public Offering (IPO) Explained

    An initial public offering (IPO) marks the start of a company's publicly traded life. Find out why companies undergo IPOs, and how the process works.
  4. Investing

    How To Track Upcoming IPOs

    Interested in investing through IPOs? Here is the list of free sources for information on upcoming IPOs.
  5. Investing

    Why Silicon Valley Unicorns Could Soon Be Extinct 

    It seems inevitable that the throng of unicorns that have ruled Silicon Valley will become gradually thinner over the coming months. Should you be worried?
  6. Investing

    Market Volatility, Weak Economy Delay Major IPOs

    These outside factors can delay and affect IPOs when they are finally listed on a stock exchange.
  7. Investing

    2011's Biggest IPOs

    2011 was another big year for IPOs.
  8. Investing

    Tech IPOs Have Been Heating up (FDC, TEAM)

    While the market for tech IPOs has stalled a bit lately, it seems to be mounting a recovery.
  9. Investing

    IPOs May Get a Trump Boost in 2017

    The incoming Trump administration is likely to cause the number of U.S. IPOs to surge this year.
Frequently Asked Questions
  1. Why Do Most of My Mortgage Payments Start Out as Interest?

    Fear not: Over the life of the mortgage, the portions of interest to principal will change.
  2. What is the difference between secured and unsecured debts?

    The differences between secured and unsecured debt, and how banks buffer risks associated with each type of loan through ...
  3. How Many Times has Warren Buffett Been Married?

    Warren Buffett has been married twice in his life, but the circumstances surrounding the marriages were unconventional.
  4. What's the smallest number of shares of stock that I can buy?

    Many people would say the smallest number of shares an investor can purchase is one, but the real answer is not as straightforward. ...
Trading Center