Initial Public Offering (IPO)

January 08th, 2017

What is it?

An Initial Public Offering (IPO) refers to the first time that the stock of a private company is offered to the public. Often issued by emerging companies with plans to expand, IPOs are a good way to raise capital. They also allow large privately owned companies to become publicly traded.

Once a company enters this process, it stops being a private company and instead becomes a publicly-listed company on the relevant stock exchange. This effectively means it must make its accounts public and share growth and earnings statements.

Trading IPOs

Trading always carries risks, but with IPOs, the risks are increased as there is little or no historical data to analyze.

We recommend that you review the Economic Calendar to find the dates of upcoming public offerings and follow the financial news to get as much information about the company as you can.

Once the IPO has happened you trade on the company’s shares like you would on any other company. With Markets.com you can trade CFDs on over 2,000 instruments including hundreds of publicly listed companies.

Video disclaimer:
This information is communicated to you by Safecap Investments Limited (“Safecap”) and has been prepared by Trading Central S.A (“Trading Central”) of 11 bis rue Scribe, F-75009 Paris. Trading Central engages in the preparation of technical, economic and corporate news and analysis for the forex, equities and other global markets. Trading Central is not registered in France as an Investment Services Provider. Affiliates in the Trading Central Group are registered in two jurisdictions. Trading Central is remunerated for this service by Safecap on a fixed fee basis.

This information is not and should not be construed to be investment advice. It is communicated to you for general information purposes only and does not have regard to your particular investment circumstances or objectives. Descriptions of any company or companies or their securities or the markets / economies or developments mentioned herein are not intended to be complete. This information set out herein should not be regarded by recipients as a substitute for the exercise of their own judgment as the information has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Furthermore, the application of taxation laws depends on an investor’s individual circumstances. Accordingly, each investor should seek, if he/she considers appropriate, relevant independent professional advice on both the investments considered as well as the taxation implications before making any investment decision. The information and opinions herein have been compiled or arrived at based on information obtained from sources believed to be reliable and in good faith. Such information has not been independently verified, is provided on an “as is” basis and no representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness, reliability, merchantability or fitness for a particular purpose of such information and opinions. All statements of opinion (including indicatively words or statements like “bullish”, “bearish”, “key support”, “outlook”, “projection”, “expectation” and “believe”) and all projections, forecasts, or statements relating to expectations regarding future events or the possible future performance of investments, represent Trading Central’s own assessment and interpretation of information available to Trading Central currently and do not relate to the individual circumstances of any investor or recipient of this communication.

This information does not form a fiduciary relationship or constitute advice by Safecap or Trading Central, and cannot be relied upon as a representation that any particular transaction necessarily could have been or can be effected at the stated price. This information is not an advertisement of securities. Opinions expressed herein may differ or be contrary to opinions expressed by other business areas of Safecap, Trading Central or their affiliates as a result of using different assumptions and criteria. All such information and opinions are subject to change without notice, and neither Safecap or Trading Central nor any of their affiliates is under any obligation to update or keep current the information contained herein. The financial instruments described herein may not be eligible for sale in all jurisdictions or to certain categories of investors.

The information herein is not intended for distribution to the public and may not be reproduced, redistributed or published, in whole or in part, for any purpose without the written permission of Safecap, and neither Safecap or Trading Central or any of their affiliates accept any liability whatsoever for the actions of third parties in this respect.

Trading CFDs carries risk and could result in the loss of your deposit, please trade wisely. Read full Risk Disclosure.
Please note that the materials are offered for promotional purposes and do not entail any obligation to purchase investment services from the firm.