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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.

stock market
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istock

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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