Wednesday, January 1, 2020

What Is an IPO and What Are Its Benefits?

Stock Graphs
Photo by Chris Liverani on Unsplash

An experienced professional in the financial industry, Dan Klausner is a managing member of the Silver Birch Companies located in Carmel, Indianapolis. Previously, Dan Klausner worked as an institutional fixed-income salesman responsible for billions of dollars in initial public offerings (IPOs).

An IPO happens when a private corporation offers its shares to public investors in a new stock issuance. This allows regular stock market investors to buy the shares of a formerly private-held company, which raises capital for the company while providing the public with an opportunity to profit.

In addition to the potential for significant growth due to the increase of capital, IPOs also help publicly traded companies to use their stock shares when merging and acquiring other businesses. The money raised through the IPOs can also be used for marketing, development, research, or for any other investments that will help them to keep growing and making more money.