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Initial Public Offering (IPO)
Below, you'll find a definition of this investing term...

Definition: When a company wants to go public, the IPO is the first opportunity that investors have to invest in the company.  Stocks typically rise considerably on the IPO day.

TeenAnalyst Advice: Inflation is bad for investors because it eats away at their rate of return.  It's also a critical reason why people should invest their money.

There's a cost to keeping your money in cash.  That cost is that it won't be able to buy as much in the future as it will today.  If inflation is 3.5% per year (the historical average), it means your money is losing 3.5% of value each year.  So if you're earning less than 3.5% in interest, you're actually losing money.

 

Related Sections on Our Website

Investing - Learn more about investing basics and strategies.

Business - Learn about starting your own business.

Stocks - Learn about investing in the stock market.

Advanced Topics - Learn more about topics geared towards advanced investors.

 

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