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What is an IPO?

Published On: Feb 02 2012 08:49:10 AM PST   Updated On: May 15 2012 07:53:56 AM PDT

What is an IPO and what does it mean for a company? Read on to find out.

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istock

In the fixed price method, the price at which the securities are offered is fixed in advance. In the book building method, the investors have to bid for shares within a price band specified by the issuer and the final price is decided after observing the result of the bidding.

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