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Glossary entry · What you own
IPO
Definition
Initial Public Offering. The moment a private company first lists its shares on a stock exchange and sells them to public investors. Often hyped, often volatile in the first months, often a bad time to buy — early shareholders (employees, early investors) usually sell into the hype.
Example
When Facebook went public in 2012, the IPO price was $38; the stock fell below $20 within months.
Related
What you own
Stock
A share of ownership in a company. You profit if the company grows; you lose if it falters.
Read →Bond
A loan you make to a government or company. They pay you interest, then return your money.
Read →ETF
A basket of many investments — often hundreds — bought in a single transaction.
Read →Index
A representative basket of a market — like the S&P 500 or the IBEX 35.
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