IPO Initial Public Offerings, or IPOs, generated a fair amount of hype in the late 1990s.				> Home > Glossary > Support
		An IPO is the first time a company sells stock to the public in order to raise money -- also commonly referred to as "going public."
		In the context of the 1990s bull market, many IPOs -- especially Internet companies -- became hot commodities. The anticipatory build-up caused prices to soar astronomically in the early days and weeks after they went public. IPO trading became somewhat more accessible to individual investors in 1999, and some mutual funds even specialized in IPOs. Beginning in 2000, IPO numbers decreased as the bull market faltered, and it was no longer common to see IPOs in the front-page headlines.
		IPOs haven't disappeared completely, though. If you have the opportunity to invest in an IPO, as with any stock, you should do careful research on the company before investing in it. There is no substitute for researching a company to see whether it has a solid business plan and prospects for the future.
		One more point If you are thinking about investing in an IPO, make sure you find out what the company plans to do with the money. You want them to be planning expansion, not paying off debt.

		Previous		Next

	© 2025 Morningstar Investment Management LLC