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Community: Investing Wiki

Term Of The Hour

setting IPO price: Original post by Cam Merritt of Demand Media When a company goes public -- begins selling stock to outside investors -- it doesn't just pick a share price out of thin air. The stock's underwriter tries to set a price that will gain the company the most money while still guaranteeing that the initial investors, the ones taking the risk by buying the stock, will be rewarded with a profit.

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