What is an IPO?

Published On: Feb 02 2012 08:49:10 AM PST   Updated On: Jul 23 2015 10:09:59 AM PDT

As Ferrari prepares for an IPO, find out more about an initial public stock offering and what it means for a company.

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After deciding the band, bids are invited on all prices of the band. Once the book is closed, the seller fixes the price at which all of its shares will get sold.

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