http://resources.lawinfo.com/en/Legal-FAQs/Initial-Public-Offerings-IPOs/index.html LawInfo - Legal Resource Center offers free legal forms and free legal documents that is designed to help consumers and businesses resolve their legal issues http://resources.lawinfo.com/en/Legal-FAQs/Initial-Public-Offerings-IPOs/Federal/what-is-an-ipo.html The very first sale of stocks to the public is called an initial public offering (IPO), and occurs on the primary market. Corporations sell stock to the public as one way to raise capital. Before it can issue new stock, a corporation must first file registration statements with the Securities and Exchange Commission. A twenty­day wait is required before it can sell the stocks. IPO FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Initial-Public-Offerings-IPOs/Federal/what-is-a-hot-issue.html If the price for an IPO increases in the first day of trading, it is considered a hot issue. Owners and employees of broker­dealers and other industry insiders are prohibited from participating in hot issues. A prohibited owner or employee is generally allowed to begin trading in the aftermarket. The trading that occurs after an initial public offering (IPO) is the aftermarket. IPO FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Initial-Public-Offerings-IPOs/Federal/what-is-a-preliminary-prospectus.html The first offering document printed by the company with some of the details of an IPO. The price range and number of shares to be issued is usually included in the preliminary prospectus but the terms may be changed before the final prospectus is distributed. Some lettering on the front cover is printed in red so many people refer to it as the "red herring." During presentations to potential investors, company representatives are limited to discussing only information that is contained in the current prospectus. IPO FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Initial-Public-Offerings-IPOs/Federal/what-should-i-look-for-in-a-prospectus.html Companies are required to outline all foreseeable potential risks affecting their business, and all the information must be confirmed by an independent CPA. Companies are required to detail any problems that they have encountered, major changes in management, and foreseeable competitive challenges sense the last report. They must give detail descriptions of their financial condition as well as their outlook for future operating expenses, sales, cash flow, earnings, etc. They must provide information on stock distributions including distributions among company officers and any IPOs ­ including prices. They need to reveal any legal proceedings that can affect the financial status of the company, as well as any likely future proceedings. They should describe the regulatory environment that affects them and its current and future effects on earnings. The company should outline their success relative to similar companies in the same market. They should offer an outlook for the future of their market and how they plan on competing in that market. IPO FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Affinity-Fraud-Securities/index.html Free Affinity FAQs Securities Sub-categories Fri, 27 Nov 2009 07:47:02 GMT http://resources.lawinfo.com/en/Legal-FAQs/Obtaining-Information-on-Legal-Actions-and-the-Pros-and-Cons-of-Arbitration-vs-Court/index.html Free Arbitration FAQs Securities Sub-categories Fri, 27 Nov 2009 07:47:02 GMT http://resources.lawinfo.com/en/Legal-FAQs/Class-Actions/index.html Free Class Actions FAQs Securities Sub-categories Fri, 27 Nov 2009 07:47:02 GMT http://resources.lawinfo.com/en/Legal-FAQs/Overview-of-Major-Securities-Laws-and-Terminology/index.html Free Securities and Exchange Commission FAQs Securities Sub-categories Fri, 27 Nov 2009 07:47:02 GMT http://resources.lawinfo.com/en/Legal-FAQs/Information-for-Businesses/index.html Free Starting A Business FAQs Securities Sub-categories Fri, 27 Nov 2009 07:47:02 GMT