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IPO
(Initial Public Offering)
An IPO (Initial Public Offering) is when a private company lists shares on a stock exchange (e.g., NYSE, NASDAQ) to raise capital from public investors. The process involves underwriters (e.g., Goldman Sachs), SEC filings (S-1), and roadshows to set an initial price.
Notable 2020s IPOs include Snowflake ($3.4B raised) and Rivian ($12B). While IPOs offer growth potential (e.g., Amazon's 1997 IPO at $18/share), they're risky—50% underperform the market post-listing. Alternatives like SPACs or direct listings (e.g., Spotify) bypass traditional IPOs. The FOMO around 'hot' IPOs often leads to volatility, as seen with meme stocks like STONKS.
Notable 2020s IPOs include Snowflake ($3.4B raised) and Rivian ($12B). While IPOs offer growth potential (e.g., Amazon's 1997 IPO at $18/share), they're risky—50% underperform the market post-listing. Alternatives like SPACs or direct listings (e.g., Spotify) bypass traditional IPOs. The FOMO around 'hot' IPOs often leads to volatility, as seen with meme stocks like STONKS.