An initial public offering (IPO) ? the occasion when a firm?s shares are issued to the public for the first time ? is one of the most exciting events in the life of a company, providing new opportunities for the business, its managers and for investors.
IPOs have considerable appeal since they allow investors to buy shares in exciting new companies as they make their debut on the stock exchange. In addition, there is the lure of making potentially high returns in a relatively short period of time, as quite often on the first day of trading the share price of these companies closes much higher than the price at which the shares were offered to investors in the IPO.
Initial Public Offerings by Arif Khurshed is an enlightening guide that will help all those interested in the workings of the financial markets in their quest to understand IPO companies.
Khurshed states that his main purpose with the book is to provide information on the mechanics and performance of IPOs; he achieves this well. Readers will find information on many fundamental IPO matters, including the different methods of flotation, how IPOs are priced, and the performance of IPOs in the short and long term. The book also provides some information related to investing in the IPO market, including where to find out about IPO companies and how an IPO prospectus is structured.
This is a well-written and thought-provoking study of a fascinating investment area. If you are an academic, finance professional or serious investor looking to broaden your knowledge of stock market flotations then you will find Initial Public Offerings to be an indispensable guide.