The start of something. The Big Bang. Like the time you met that cutie at a party...and now you're married with four kids.
In finance, we're talking about loan or mortgage origination. You walk into a bank and start filling out some forms. They take you through the process, getting you to hand in all the pertinent paperwork about your finances, checking your credit score, getting the contracts ready and all the other documents you need to review and sign.
Once you get the loan (assuming you get approved), the originator might not keep it. They could sell your loan on the secondary market to another financial institution, who assumes the risk of default and receives the payments from that point forward.
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Finance: What is an IPO?25 Views
And finance allah shmoop What is an i p o
Well this is a hippo and it has nothing to
do with an ipo Auras Normal humans pronounce it if
both well actually most people just spell it out I
po It stands for initial public offering In the three
words tell the story and i pl refers to a
company who's raising money by selling shares of itself to
the public for the first time a maiden voyage in
public funding if you will Whatever dot com has forty
million shares outstanding after three private rounds with venture capitalists
and private investors it wants to raise money to go
big internationally And for the first time it will offer
shares to joe and jill public And that means that
all of it shares will be tradable publicly on the
open market like on nasdaq or the new york stock
exchange That is the insiders early investors founders et cetera
will be able to just call their broker at schwab
or fidelity or wherever and sell their shares get liquid
and buy themselves a maserati because it's not what everyone
does after a nice meal So whatever dot com sells
ten million shares a twelve bucks each to raise one
hundred twenty million dollars which they can spend to build
out offices all over the world So yeah that's an
ai po and that's Why a company generally wants to
make shares available to the public because once you've made
an initial public offering and you make money off the
sales of your stock you khun by as many hippos
as you like and just remember to feed them three
times a day they get Cranky if they go too 00:01:35.158 --> [endTime] long in between No
Up Next
A primary offering is just an IPO - the initial public offering of a given stock. Primary shares are the shares of that stock that are sold... publ...
