What is an IPO?

POSTED: 08:49 AM PST Feb 02, 2012    UPDATED: 07:53 AM PDT May 15, 2012 

What is an IPO and what does it mean for a company? Read on to find out.

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iStock / OlgaMiltsova

How is the price band decided? Most companies are free to price their shares, but some must request permission. The prices are decided by the company's board of directors after consulting a bookrunner.

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