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IPO stands for initial public offering. 

It’s when a company opens itself up to everyday investors, selling shares on the stock market for the first time. (Wanna know more about how the stock market works? (Check out our explainer for that.)

A pre-IPO company is considered privately owned, which is why you'll often hear people refer to IPOing as “going public.” 

Why do companies “go public”?
Simple answer? Cash money. 

Think about it this way: before a company goes public, it’s being funded by private investors (family, friends, founders, venture capitalists, etc.), and it’s a lot easier to sell a piece of your company to a million buyers for a small price than to ask one investor to write a $500M check. 

The capital a company gets from going public can pay off debts and fund expansions.

There’s also a street cred aspect: companies that go public have passed Wall Street scrutiny. It’s good for branding and attracting customers and talent. 

How does a company go public?
It’s quite the journey…

The process starts when a company hires an investment bank (think: Goldman Sachs or Morgan Stanley) to be their IPO sherpa. 

Next comes an S-1 filing with the SEC that forces the company to lay everything bare. Finances, risks, lawsuits, ugly quarters… all of it becomes public record. It's the corporate equivalent of having your diary posted online.

From there, the company hits the road. Executives go on tour, pitching to the big-money players (mutual funds, pension funds, institutional investors) in what's called a “roadshow.” Think of it as a very expensive, very high-stakes sales trip. The bank uses that information to gauge what investor interest would be and set an share initial price. Then, on IPO day, the company gets a ticker symbol, shares hit the market, and anyone with a brokerage account can buy a slice of the company pie.

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CHRISTIAN PERSPECTIVE
The Bible warns us over and over about the danger of feeding an insatiable desire for wealth. Fight that greed by exercising your generosity muscles, making a habit of an open-handed approach to all God’s gifts. 

“Yours, Lord, is the greatness and the power and the glory and the splendor and the majesty, for everything in the heavens and on earth belongs to you… But who am I, and who are my people, that we should be able to give as generously as this? For everything comes from you, and we have given you only what comes from your own hand.” 
1 Chronicles 29:11, 14 (CSB) (read full passage)

Real estate investing can feel like it's only for wealthy folks… But what if there was an easy way to build wealth while also doing good? Well, meet Roots. 

Roots is a new way to invest in real estate. It’s

So, why now? Roots' unit price is set at $153.07 until June 30. After that, rates are reset, and historically, their unit price has never gone down.

TL;DR: invest by June 30 to take advantage of the current unit price.

*Information contained herein, although believed accurate and compiled from credible sources, is not guaranteed. There can be no assurance the business objectives of the Company will be achieved. Investors may lose all or part of their investment, and distributions with respect to such investment are not guaranteed. Past performance is not indicative of future returns.

Curious how we choose sponsors?  Learn more  |  Advertise with us

Crossword Solving another TPO Mini Crossword!

Bee honest… this is pretty cool art.

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*This is a free promo for a TPO-reader-owned small biz. Have your own small business you want us to know about? Fill out this form!

Top News Article: Y’all loved seeing what your state put in the America 250 time capsule.

Top Christian Perspective: A prayer for those experiencing profound grief; download and save it here, and share it with someone who needs it.

Top Whipped Cream: The perfect summer lunch… Snoop Hot Dogg

Courage for Life Study Bibles*

The Bible can be overwhelming, but the Courage for Life Bibles for Men and Women put a four-part Bible study on every page of Bible text to help ya out. 

That’s 1,464 studies in one volume, so wherever you open it, you’re pointed in the right direction. Built around the Seven Steps to COURAGE and 82 profiles of bold believers (from Abraham to C.S. Lewis, Esther to Corrie ten Boom), each edition offers a discipleship pathway in the New Living Translation. 

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A Prayer for Living Counterculturally

Father in Heaven, Your upside-down kingdom of self-sacrifice and weakness is foolishness to the world. But to us, it is wisdom and life.

When the world seeks to slowly neutralize Christ’s aroma, rub off on us the sweet smell of Your Spirit. Equip us to be faithful ambassadors of Your kingdom, bringing Your culture of hope and customs of love to the broken places in our earthly outposts. Train us to celebrate the good in our communities and to cultivate growth in all places of our exile so we may bless the world You love. Amen.

(You’ll still get our M/W/F news)