What is the IPO system?

Question

What is the IPO system?

Answer 1

Initial public offering (IPO), also referred to simply as a "public offering," is the first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded.

In an IPO, the issuer may obtain the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), best offering price and time to bring it to market.

IPOs can be a risky investment. For the individual investor, it is tough to predict what the stock will do on its initial day of trading and in the near future since there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, and they are therefore subject to additional uncertainty regarding their future value.

Answer 2

IPO - Initial Public Offering of stocks and bonds for public purchase/investment.  I'm not sure there is a system but there is a process to prevent illegal insider trading.  This process can be abrogated by unscrupulous securities traders and when caught they are liable to criminal charges at the Federal level, SEC and US Attorney's Office.

If you post your question in Business & Finance>Investing you will probably get a much better answer.

Answer 3

This really depends on what IPO system you are talking about. It could be Initial Public Offering or the Input Process Output system. I don't really know much about the Initial Public Offering, but you could check http://en.wikipedia.org/wiki/IPO for the answer. As for Input Process Output, it is geographical system of describing and classifying agriculture as a system. Input refers to what a person needs for the job. They are divided into physical, human, and capital inputs. Say for farming. Examples of physical inputs are land, temperature and water. An example of human inputs is manpower(labour).Examples of capital inputs are machinery, fertilisers and seeds. Processes refer to the process in which the job is to be done. Examples are the cultivation of crops, the rearing of animals, and fishing. Outputs refer to what you reap from your hard work. Examples are animal products and  crops.