Knowledge is power. We empower our clients.

Get Started Now
<< Back to Financial Glossary

What is an IPO?

An Initial Public Offering, or “IPO,” refers to the process when shares of a private company are first sold to the public. It is often called “going public.” Many companies – large and small – decide to go public and offer investors a portion of the ownership of their company by selling shares of stock.

As an individual investor, it is nearly impossible to gain access to a stock in its IPO before it goes public. Institutional Investors (pension funds, hedge funds, etc.) are generally given priority to purchase the stock.

Depending on the amount, investing in a new public stock may significantly increase the risk profile of your overall portfolio. In addition, timing of the purchase becomes important, as these new stocks can be volatile from day to day.

Jemma Everyday Wisdom: While IPOs often generate a lot of excitement and publicity, they may not make for a great long-term investment. Keep in mind your overall portfolio and your goals when considering an investment in a new public company.

Log In to Your Existing Account Get Started Now

Need assistance? Call 855.662.2121 or email

You are now leaving Jemma Financial

Yes, I would like to leave No, I would like to stay

Important Notice

You are now leaving the Jemma Financial Services website and will be entering the Charles Schwab & Co., Inc. (“Schwab”) website.

Schwab is a registered broker-dealer, and is not affiliated with Jemma Financial Services or any advisor(s) whose name(s) appear(s) on this website. Jemma Financial Services is/are independently owned and operated. [Schwab neither endorses nor recommends {Name(s) of Investment Management Firm(s)}, unless you have been referred to us through the Schwab Advisor Network®. (This bracketed language is for use by Schwab Advisor Network members only.)] Regardless of any referral or recommendation, Schwab does not endorse or recommend the investment strategy of any advisor. Schwab has agreements with “Name(s) of Firm(s)” under which Schwab provides Jemma Financial Services with services related to your account. Schwab does not review the Jemma Financial Services website(s), and makes no representation regarding information contained in the Jemma Financial Services website, which should not be considered to be either a recommendation by Schwab or a solicitation of any offer to purchase or sell any securities.