What happens in an IPO?
AnswerA private company sells shares to the public for the first time
Going public opens ownership to public investors.
Money · Facts & stats
IPO facts & stats
7 fact-checked facts about initial public offerings and how companies go public, each with the reason behind it. 5 more are in today's round and join this page after it closes.
The basics
After an IPO, where do shares usually trade?
AnswerA stock exchange
Listed shares trade on exchanges such as the NYSE or Nasdaq.
Going deeper
What are the investment banks that manage an IPO called?
AnswerUnderwriters
Underwriters help price and sell the offering.
How long does a typical IPO lock-up period last?
Answer90 to 180 days
Insiders are usually barred from selling for 90 to 180 days.
Which US agency reviews IPO registration statements?
AnswerSEC
The Securities and Exchange Commission oversees registrations.
Expert level
What does a greenshoe option allow underwriters to do?
AnswerSell additional shares if demand is strong
It permits an over-allotment, typically up to 15 percent.
Google's 2004 IPO used which pricing method?
AnswerDutch auction
Google used an auction to set its IPO price.
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