This year has been a decent year for new stock issues, with about 120 companies going public and raising around $40 billion in new capital so far in 2019. However, some cracks are appearing in the IPO market that could suggest the economy is nearing the end of its historic growth cycle. New issues Peloton and Uber turned out to be flops (so far), while scheduled IPOs in WeWork and Poshmark were scrapped due to lack of investor interest.
Since initial public offerings convey important information regarding the overall strength of the economy, today we dissect the process of going public.
Every stock that trades on an exchange was once a private company that decided to sell shares to the public.