What is an IPO?
An IPO represents the decision of a private company to seek public funding. This opens the company to increased regulation, but the largest IPOs worldwide generate billions of dollars in investment. This money comes from newly issued stock, the sale of which becomes open to the public at the time of the IPO, the initial offering of that stock to the public.
IPOs in the United States
There are a large number of IPOs in the United States each year. In many cases, the IPO is a chance for the company to have a positive return and an increase in capital with which it can grow its operations. But a portion of IPO deals shows negative first day returns.