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What is an IPO?

POSTED: 08:49 AM PST Feb 02, 2012    UPDATED: 06:22 AM PST Nov 07, 2013 

As Twitter launches its IPO, find out more about an initial public stock offering and what it means for a company.

Calculator and money
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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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