The ClickIPO Glossary
Terms to help you understand IPOs
The number of shares distributed to an investor.
A block of shares available for purchase usually priced at or below market prices, usually without a registration statement. A block of shares for sale is announced after the market closes, usually at a discount to the closing price. Investors have a short period of time, less than 2 hours, to place an order. If allocated shares, they will be in the investors account before the market opens the following day.
Refers to either an online brokerage or traditional brokerage whose clients make either directed or self-directed investments.
Underwriter, displayed on the upper right side of the prospectus that assists the Lead Underwriter.
A “COB” is the price that a customer is offering to pay for an IPO. The COB is for a range that is less than 20% above the top end of the “price range”. For a secondary offering, the COB does not have a “price range” because pricing is based on, and usually near the closing price of the stock. On the effective date, we will inform you of the pending effectiveness of the offering and we will give you a 60 minute “last chance” window to withdraw or modify your conditional offer to buy. You can also withdraw or modify your conditional offer to buy at any time prior to this 60 minute notice. Once the 60 minute window passes, your conditional offer to buy becomes a valid purchase contract that cannot be canceled.
The “COB Price Range” is any final price that is less than 20% above the high end of the price range. As an example, a COB for an offering with a price range of $18-$20 would still be valid if the final price is below $23.99. Keep this in mind when placing a COB.
The date on which an Offering is cleared by the SEC. The price and shares to be sold are set.The stock will trade when the market is open.
An exchange platform where investors can buy and sell stock. NASDAQ and NYSE are exchanges.
When a company issues shares to the public for the first time. Known as “going public”.
A user of the ClickIPO app, usually with the intention of following and/or investing in public offerings. Also referred to as “Retail Investor”.
The company that is going public and is issuing shares to the public.
This is the Underwriter that leads an offering, located in the upper left hand side of the prospectus.
An Offering refers to any public offering, whether IPO or Secondary, in which the offering will be made available in the public markets.
An estimated range, usually in $2.00 increments ($18-$20 as an example) within which an Offering is expected to be priced. This range can change during the Registration Period and is only a guide. A final price will be chosen on the Effective Date.
A legal document that provides details about an offering that is required by and filed with the Securities and Exchange Commission.
In terms of an IPO, the period where an issuer is subject to a SEC ban on promotional publicity. The quiet period usually lasts either 40 or 90 days from the IPO. – Source: Investopedia.com
The process by which a company files required documents with the Securities and Exchange Commission detailing the particulars of a proposed Public Offering. A company issuing shares must reveal essential facts and detailed information about its business during the registration process, including a business and asset description, a description of the security being offered and the details of that offering, a description and names of the company’s management, and the company’s financial statements, which have been certified by an accountant working independently of the company. – Source: Investopedia.com
This is typically an individual who invests his or her own money in stocks, bonds, real estate, and other investment types.
When an already public company sells or registers additional shares in the public market. These offerings typically have a trading history and valuation set by the market. Secondary Offerings come in different forms, and are often completed in hours or days, instead of weeks.
This is typically a Brokerage Firm or Investment Bank that helps distribute shares of an offering.
“A type of Secondary Offering that is announced right after the market closes. The offering is usually priced and customers must place orders within a few hours. The shares are allocated before the market opens the next day.”
An investment bank that works with the Issuer to take it public.
A group of Underwriters that have agreed to underwrite a portion of the offering but they will not lead or co-manage the offering.These Underwriters are listed on the bottom of the front page of the prospectus.
On the effective date of an IPO or Marketed Secondary Offering, investors will be given at least a 60 minute window to cancel their COB. This is “one last chance” for an investor to cancel a COB. You can also withdraw or modify your conditional offer to buy at any time prior to this 60 minute notice. Once the 60 minute window passes, your conditional offer to buy becomes a valid purchase contract that cannot be canceled.