HOW IPO REALLY WORK

HOW IPO REALLY WORK ### **How IPOs Really Work: A Step-by-Step Breakdown** #### **1. Company Prepares for Going Public** - Hires investment banks (*underwriters*) to manage the IPO. - Undergoes financial audits, regulatory filings (e.g., SEC’s **S-1 Form**), and sets an initial share price range. #### **2. Roadshow & Investor Hype** - Underwriters pitch the IPO to big investors (hedge funds, institutions) to gauge demand. - Media buzz and "grey market" trading may influence perceived value. #### **3. Pricing the IPO** - Based on demand, the company and underwriters set the **final IPO price**. - Institutional investors get first dibs; retail investors often buy only after listing. #### **4. IPO Day: Trading Begins** - Shares debut on an exchange (e.g., NYSE/NASDAQ). - ...