posted on 06-06-2019

Death Star IPO

Updated October 1, 2019

What is a Death Star IPO?

A Death Star IPO is a wildly successful IPO. The term is a reference to the Star Wars movies, in which Darth Vader's Death Star battle station could pulverize other planets with a single laser beam.

How Does a Death Star IPO Work?

For example, let's say Company XYZ invents a cure for cancer and patents the invention. The company can change the world and make its owners fabulously wealthy, so investors are drooling over the company's upcoming $900 million IPO. The stock starts trading, and on its first day the share price triples. This is a Death Star IPO.

Luke, I'm your broker.

Why Does a Death Star IPO Matter?

Death Star IPOs get a lot of anticipatory press, a lot of interest from investors and a lot of media coverage. They also tend to "explode" on the first day of trading and can influence the rest of the market.


Read This Next

5 Credit Cards That Will Pay You Hundreds Just For Signing Up (2020)
What's even better than earning rewards for spending on your credit cards? Getting paid hundreds of ...
The Top 4 Balance Transfer Credit Cards for 2020
Tired of dragging credit card debt around with you? Taking 15 minutes to transfer your debt to a cre...
The 5 Best Rewards Credit Cards for 2020
If you're going to spend money anyway, then why not get paid for it? Whether you're looking for c...

Related Definitions

Initial Public Offering (IPO)
An initial public offering (IPO) refers to the first time a company publicly sells shares of its stock on the open market. It is also known as "going... See More
Term
In the finance world, a term is the length of time until a debt matures. A term can also be a condition of a deal, as evidenced by the phrase term sheet, which... See More
Patent
A patent is a grant of property rights to an invention. In the United States, this is done through the U.S. Patent and Trademark Office. See More
Stock
Stock, also known as equity, represents ownership interests in corporations. Whether you own one, 100 or 100 million shares of stock in a company, you're... See More
Broker
A broker is a person or a company that acts as an intermediary between buyers and sellers. Brokers exist not just in the financial markets, but in the real... See More

Popular Articles
Investing
Financial Statement Analysis for Beginners
Investing
15 Financial Ratios Every Investor Should Use
Investing
Calculating Internal Rate of Return Using Excel or a Financial Calculator
Personal Finance
5 Common Sense Lotto Realities Everyone Ignores
Loans
How to Calculate a Monthly Loan Payment in Excel (Mortgage, Car Loan, and More)
Mortgage Calculator
Mortgage Calculator: What Will My Monthly Principal & Interest Payment Be?
Investing Calculator
Million Dollar Savings Calculator: How Much Do I Need To Save to Become a Millionaire?
Loans Calculator
Loan Interest Calculator: How Much Interest Will I Pay My Lender?
Investing Calculator
Simple Savings Calculator: How Much Could I Save Up Over Time?
Loans Calculator
Car Loan Calculator: What Will My Monthly Principal & Interest Payment Be?
Copyright © 2020. InvestingAnswers, Inc. All Rights Reserved