IPO
‘Initial Public Offer’. An IPO is the first time a company offers its shares to investors. IPOs or new issues are usually the first opportunity for private investors to buy into a company.
The money raised from an IPO or new issue can be used to grow the company, reduce debts, or release cash to the current owners (often management or private equity holders). For an investment trust launch, the money raised is invested on the holders’ behalf.
More on Investment trustsPopular terms
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