Please could someone explain what IPO is in investor鈥檚 language?

I strongly disagree with what the first gentleman has said. Not every company are same and not their object for IPOs are same.

Just like he said, IPO means Initial Public Offers by a company that intends to raise money for the purpose of their business. It may be to start the business of a new company or to expand the current business. The object of the company is mentioned in the prospectus which the prospectus investor must read before investing.

When you invest in IPO it is assumed that you have read these prospectus and agree with it.

IPO is Initial Public Offering -- its when a company first sells its stock to the unsuspecting public, who are baffled by the companies tricky accounting and who later claim securities fraud when the stock they bought in the IPO becomes worthless.

It may not be a crime, but it sure is fun to see the faces of those retirees whose lifetime savings is wiped out by fraud. Wait, I think that might be a crime.

Ahhhh, Lou's back with my three dozen chocolate sprinkles


FOLLOW UP: What? Some guy named "Bhavesh" disagrees with me? If any of you are in a tall building, RUN FOR YOUR LIVES!!!

It simply means that a company that was previously privately owned is " going public"...they have come to a point where their profits cannot keep up with the expenditures necessary to keep the company growing...so they sell shares in the company..and use that newly raised cash to make changes that will expand the company in some way...( more stores, or more research, or larger inventory, bigger ships, etc)
Sometimes the IPO's are " spin-offs" from other companies...but the parent company does not want to use profits from one branch to expand this other branch...so they go to the public...
In effect, as an " investor" you are sort of " getting in on the ground floor"...sometimes great....other times could be a bad idea ( the same can be said about any investment, no?)
Any investment is "speculation"...but at least you have " past performance".....with an IPO, you just have to be convinced ( after research) that " This is a good idea...this should take off and make some reasonable profit"
In the last few years, there have been some great ones...BIDU...Underarmor.. lately VMW.