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.

Money
10 / 10
Rick Wilking/Reuters

After deciding the band, bids are invited on all prices of the band. Once the book is closed, the seller fixes the price at which all of its shares will get sold.

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