Should you buy into IPOs? My Food Bag and Xero : good examples of froth versus substance : how to spot the difference
The shares mentioned in this blog are done so for illustrative purposes only, and comments made about them should not be used as a reason to buy, sell or hold the share. An Initial Public Offering (IPO) is where a company or Government raises capital from members of the public (and institutions) by offering the chance to buy shares in a firm or State-owned enterprise. Cash in exchange for some ownership and control of the business. Back in the 1980's Prime Minister Margaret Thatcher expressed her desire to make Britain "a share owning democracy", as she sold a number of State-owned enterprises. There were political and (pressing) economic reasons for her doing this and the legacy is a contentious one. However this may be the first major example of a Government actively encouraging the public to participate in IPOs. There were huge advertising campaigns that anyone living in the UK at the time will remember. Such as the sale of British Gas with the " If you see Sid,