What is an IPO?

POSTED: 08:49 AM PST Feb 02, 2012    UPDATED: 10:09 AM PDT Jul 23, 2015 

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

stock market
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In the fixed price method, the price at which the securities are offered is fixed in advance. In the book building method, the investors have to bid for shares within a price band specified by the issuer and the final price is decided after observing the result of the bidding.


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