An initial public offering (IPO) is when a company’s stock becomes available for sale to the public. Many technology stocks have had much-anticipated IPOs, but that hasn’t always translated into profit for investors.
California-based investment analyst Ken Fisher had a chapter in his book, The Wall Street Waltz (1987), titled “IPO Means It’s Probably Overpriced.” Fisher has often used the IPO nickname “It’s Probably Overpriced” and his definition has had popular use on Wall Street.
Wikipedia: Initial public offering
An initial public offering (IPO) or stock market launch, is the first sale of stock by a company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises. Many companies that undertake an IPO also request the assistance of an investment banking firm acting in the capacity of an underwriter to help them correctly assess the value of their shares, that is, the share price (IPO Initial Public Offerings, 2011).
What does IPO stand for?
It’s Probably Overpriced
Wikipedia: Kenneth Fisher
Kenneth Lawrence Fisher (born 1950) is an American investment analyst, and the founder, chairman, and CEO of Fisher Investments, a money management firm headquartered in Woodside, California. Fisher writes a monthly column in Forbes magazine, contributes to other financial and news magazines, has written seven books, and has written research papers in the field of behavioral finance. Fisher is on the 2010 Forbes 400 list of richest Americans and Forbes list of world billionaires, and as of 2010 was worth $1.6 billion. In 2010, he was named to Investment Advisor magazine’s “30 for 30” list of the 30 most influential people on the investment advisory business over the last 30 years. As of 2010, Fisher’s firm manages $41.3 billion in 38,521 customer accounts and has been called the largest wealth manager in the United States.
OCLC WorldCat record
The Wall Street waltz : 90 visual perspectives : illustrated lessons from financial cycles and trends
Author: Kenneth L Fisher
Publisher: Chicago : Contemporary Books, ©1987.
Edition/Format: Book : English
14 May 1987, Sacramento (CA) Bee, “An expert charts road to financial success,” pg. AA1:
FROM THE Bay area, Kenneth L. Fisher runs his own money management firm, working with wealthy individuals and pension plans and focusing on equity investments.
For instance, his chapter entitled “IPO Means It’s Probably Overpriced” charts the performance of initial public offerings, which he uses to show how IPOs can be a reverse barometer of the market.
4 August 1993, Buffalo (NY) News, “Analysts say ‘buy!’ when their firms bo the underwiting” by David Robinson:
But by that time, the the price usually has shot up, which is why Ogorek says IPO can also stand for “It’s Probably Overpriced.”
10 August 1995, Miami (FL) Herald, “Netscape’s debut sparks investor frenzy; Software maker’s stock morethan doubles in value,” Business, pg. 1C:
“I’m one of those who believe IPO stands for It’s Probably Overpriced,” said Steven Eber, a Coral Gables investment manager.
New York (NY) Times
MARKET WATCH; Initial Offerings: Once Hot, but Now Hot Potatoes
By PATRICK McGEEHAN
Published: November 26, 2000
The heady days of February and early March, when the typical initial public offering doubled in price in its first day of trading, are a warm and increasingly fuzzy memory. Back then, I.P.O. seemed to stand for immediate profit opportunity. Now, investors appear to have a different interpretation: it’s probably overpriced.
Investing For Dummies
By Eric Tyson
Indianapolis, IN: Wiley Pub., Inc.
Instead of IPO standing for “initial public offering,” it’s more apt to mean “it’s probably overpriced.”
The Ten Roads to Riches:
The Ways the Wealthy Got There (And How You Can Too!)
By Ken Fisher and Lara W. Hoffmans
Hoboken, NJ: John Wiley & Sons
While a tiny percent of IPOs have been spectacular—like Google, Microsoft, and Oracle—overwhelmingly most are losers. As detailed in my recently updated 1987 book The Wall Street Waltz, IPO usually stands for “It’s Probably Overpriced.”
The Only Three Questions That Still Count:
Investing By Knowing What Others Don’t
By Ken Fisher, Jennifer Chou and Lara Hoffmans
Hoboken, NJ: John Wiley & Sons
For example, overconfidence leads investors to invest in an initial public offering (IPO; for the neophyte, IPO alternately means “it’s probably overpriced") of stock, micro-caps, hedge funds and other volatile or illiquid interests while ignoring or downplaying the associated risk.
Boston (MA) Herald
Should I buy into the Facebook frenzy?
Facebook shares go on sale today
Friday, May 18, 2012
By Rob Lutts
There’s an old saying on Wall Street that IPO stands for It’s Probably Overpriced — which is why I’d recommend not buying Facebook’s stock today following the company’s initial public offering.
IPO stands for ‘it’s probably overpriced’
One big lesson from Facebook: Don’t buy new stocks
May 23, 2012|Chuck Jaffe, MarketWatch
BOSTON (MarketWatch)—In the past few days, thanks to the initial public offering of Facebook, investors have learned what the letters IPO really stand for: “It’s probably overpriced.”
New York City • Banking/Finance/Insurance • (0) Comments • Friday, May 25, 2012 • Permalink