Ever wanted to invest in a company but later found out they’re not public? They’re privately held, by family members or early stage investors and venture capital funds. Companies like Mars, Aldi and Lego are still privately held, so members of the public, like you and me, are rarely able to invest! However sometimes these companies do become public, and this is called an Initial Public Offering, or IPO.
An IPO is the process of a company opening up to the markets for both retail (you and me) and institutional (the big investment banks) investors to get a piece of the pie. There are various reasons for an IPO, such as the the company needing to raise money or the early investors wanting a return on their initial investment. Whatever the reason, IPOs present a great opportunity to get into a company when they first hit the market.
In this episode you will learn:
> What an Initial Public Offering is
> How you can become incolved in an IPO
> The risks of IPOs for investors and companies
> Some of the biggest IPOs in the last 20 years
Stocks and respurces discussed: