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.

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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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