The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be discussing IPO basics. In particular, we’re going to be answering the question – “What is an initial public offering or an IPO?” You’ve probably heard this terminology thrown around all over the place and we do go through cycles in the market where we see more or less IPOs. We’ve recently gone through a cycle in the last year or so where we’ve started to see more tech companies start to IPO. And the idea behind an IPO is simply what it sounds like and that is an initial public offering of the company stock for people to purchase. This is the big transition that companies make from being private enterprises owned by individuals and a lot of investment companies and now transitioning to a publicly traded company. And this initial public offering is just the very first day that the stock actually starts trading in the open market and this is the opportunity for people like me and you, retail inves