IPOs or Initial Public Offerings is a simple process of rights offering which, from the term itself, is done for the first time. Only companies who have the permission of the Securities and Exchange Commission (i.e. SEC, there is a SEC for every country, in the case of the U.S. the U.S. SEC) to do so. Other major requirements include a partnership with an underwriter, and of course, the support of institutional investors . In IPOs, the institutional investors are the ones who will buy the shares at a certain price set by the investment banking organization or the underwriter. Continue reading...
