Python Machine Learning Blueprints - Second Edition
by Alexander Combs, Saurabh Chhajed, Michael Roman
What is an IPO?
An IPO is the process whereby a private company becomes a public company. Public offerings raise capital for the company and give the general public an opportunity to invest in the company by buying its shares.
Though there are variations in how this occurs, in a typical offering, a company enlists the help of one or more investment banks to underwrite their offering. This means that the banks make a guarantee to the company that they will purchase all of the shares being offered at the IPO price on the day of the IPO. The underwriters, of course, do not intend to keep all of the shares themselves. With the help of the offering company, they go on what's called a roadshow to drum up interest from institutional clients. These ...
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