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02/03/16 6:47 PM

#60485 RE: qweisackey #60476







CNBC EXPLAINS
CNBC EXPLAINS A - B C - D E - F G - H I - J K - L M - N O - P Q - R S - T U - Z
Initial Public Offering: CNBC Explains
Mark Koba | @MarkKobaCNBC

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An initial public offering—or IPO as it's most commonly called—is the process by which companies go from private to public and sell stocks shares in their firm.

IPOs don't happen overnight and take a lot of effort to put together. So here's a look at how the IPO procedure works, as CNBC explains.

What is an IPO?

If a company wants to sell stock shares to the general public, it conducts an IPO. By doing so, a company goes from the status of private (no general shareholders) to public (a firm with general shareholders).

An IPO usually takes three to four months from the beginning to the first day's trading on an exchange.