30 years: Equity capital markets
James discusses what an IPO is, why firms issue them and the process of doing so.
James discusses what an IPO is, why firms issue them and the process of doing so.
13 mins 15 secs
Many companies choose to “go public” through an Initial Public Offering (IPO) to access a wider pool of capital and to ensure shares are clearly valued and liquid. Although, some companies refrain from an IPO as it is time consuming and expensive, largely due to the ongoing disclosure requirements.
Key learning objectives:
Define an IPO
Explain why IPOs trade up on average
Learn the pros and cons of doing an IPO
06:01
03:00