Public Offering Price (POP)
What is a Public Offering Price (POP)?
Public offering price (POP) refers to the price at which shares of a company are issued in an initial public offering (IPO)
How Does a Public Offering Price (POP) Work?
When a company issues stock for the first time as part of an IPO, the underwriting investment bank is responsible for determining the stock's public offering price (POP). The POP is based on numerous variables including, but not limited to, the stock prices of similarly-valued companies in the same industry, the issuing company's growth potential and the issuing company's current value as expressed by its financial statements.
Why Does a Public Offering Price (POP) Matter?
The prices of stocks established in the market are determined by supply and demand. A POP, by contrast, is determined by fiat and reflects how a few individuals believe a share's worth of a company should be valued rather than what investors would necessarily be willing to pay based on market forces.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.