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 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.
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