What is an IPO?

Published On: Feb 02 2012 10:49:10 AM CST   Updated On: Jul 23 2015 12:09:59 PM CDT

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

Calculator and money
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iStock / OlgaMiltsova

How is the price band decided? Most companies are free to price their shares, but some must request permission. The prices are decided by the company's board of directors after consulting a bookrunner.

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