Follow On Public Offer
A Follow-On Public Offer (FPO) enables a publicly traded company to issue additional shares to the public, raising more capital post its Initial Public Offering (IPO). Unlike an IPO, which marks a company’s debut, an FPO requires prior public listing. FPOs often price shares at a discount to the current market price, reflecting the company’s established track record, making them attractive to investors. This strategy helps firms fund expansion or reduce debt, leveraging their existing market presence to tap into public investment efficiently.
Related Terms
Asset Allocation
Asset allocation is a strategy where an investor determines how to distribute their investments across...
Futures and Options
Futures and options are both types of derivative contracts, meaning their value is derived from...
Authorized Capital
Authorized capital, or authorized share capital, represents the maximum value of shares a company can...
Compounded Annual Growth Rate (CAGR)
The Compound Annual Growth Rate (CAGR) indicates the average annual return an investment generates over...
After Market Order (AMO)
After Market Order is an instruction directing a broker to place the order at the...
Bottom Up Investing
Bottom-up investing is a stock selection approach that prioritizes the detailed analysis of individual companies...
