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CUJO-31 t1_izeui16 wrote

Initial public offering, when a company goes from private to public by issuing stocks.

You create a company which you own a 100% of, but you need to raise more money. You have three primary options.

1- get a loan

2- sell a portion of your company to a private investor.

3- chop up your ownership into tiny bits and sell all or a portion of it to the public via a stock exchange, anyone can buy and sell it. The first time it hits the market is called IPO.

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sparklybeast t1_izewt74 wrote

Thanks. So are they different from a PLC?

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Thegoodlife93 t1_izf3vl5 wrote

Yes, entirely. An IPO is an event. A PLC is a classification of company.

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sparklybeast t1_izf58vc wrote

Ahhh, ok, that makes more sense, thank you. So the figures on the chart are the value of the company's shares when it was first listed?

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