Fast casual dining stocks have been one of the hottest sectors of the market throughout the past couple of years. With stocks like Chipotle Mexican Grill (NYSE: CMG) up 78% in 2013, and Noodles (NASDAQ: NDLS) soaring 139% following its IPO, it’s clear that investors have an appetite for fast food stocks. Recently, a small […]
What is a Stock IPO?
A company’s stock IPO marks its transition from a private company to a publicly traded company, and is completed with an 'Initial Public Offering' of stock. Once a company 'goes public' these shares of stock trade on public exchanges where institutional investors, like mutual funds, and retail investors, like you and me, can buy or sell shares.
By issuing a stock IPO, companies are able to raise capital that can then be used for expansion, acquisitions, to allow employees of the company to 'cash out' or for general corporate expenses. Stock IPOs are typically reserved for small, young companies, though some large companies have gotten into the act as well.
To issue an IPO, or Initial Public Offering, a company seeks help from an underwriting firm to determine at what price the stock should be sold to the public and when is the best time to offer it. Typically, a company wants to get as much money as possible for its stock. Therefore, the best time for a company to go public is when its industry is in a period of growth and demand for services and/or products are high.
The life of a stock after an IPO can be unpredictable. It’s difficult for an investor to predict how a company’s stock will perform on its initial day of trading given that there is no historical trading data to compare it against. Therefore, investing in an IPO is considered more risky than investing in stocks that have a trading track record.
By Chris Preston | Nov 12, 2013
Give Twitter (NYSE: TWTR) credit: its IPO lived up to the hype. Twitter’s stock shot up by 73% just one day after going public above its expected range at $26 per share last week. That’s a far cry from what Facebook (NASDAQ: FB) did in its May 18, 2012 market debut. The social network famously […]
By Chris Preston | Nov 7, 2013
Eighteen months after Facebook’s (NASDAQ: FB) disastrous public trading debut, the Twitter IPO was a smash success. The popular social media site is up a whopping 86% in its debut today. Twitter (NYSE: TWTR) priced its IPO at $26 yesterday, above the original anticipated range of $17-$20. It’s currently trading at just under $48. The […]
By Ian Wyatt | Nov 7, 2013
The Twitter IPO has investors lining up to buy shares of the second largest social network. And that considerable interest is sending shares soaring 74% above their IPO price. Strong demand for Twitter stock led the company to raise its stock-offering price yesterday. Shares had originally been priced with a range of $17 – $20. […]
By Chris Preston | Sep 12, 2013
A Hilton IPO is coming, aiming to become the largest initial offering ever by a lodging company.
By Chris Preston | Jun 13, 2013
Neither Beyonce nor Heidi Klum could save Coty’s (NYSE: COTY) IPO.
By Chris Preston | May 29, 2013
An Empire State Building IPO has finally been approved. True to the building's world-renowned reputation, the company is aiming for the sky in its initial offering.
By Ian Wyatt | May 28, 2013
The stock market is red hot. Not surprisingly, so are IPOs. More companies are pricing initial public offerings than at any point since before the recession. They're all cashing in on investors' renewed risk appetite, says Chris Preston.
By Chris Preston | May 21, 2013
By Chris Preston | May 17, 2013
Tomorrow will mark a year since Facebook (NASDAQ: FB) went public in one of the most hyped initial public offerings in market history. As we know now, the stock has not lived up to that hype. Facebook shares immediately tumbled after their May 18, 2012 IPO. The social network went public at $38 a share. […]