What is the difference between IPO and private placement?

The short answer is that selling stock on the open market is called an Initial Public Offering (IPO) while selling stock that isn't traded on the open market is considered a private placement. An IPO usually happens when a company has grown to such a size that it requires more capital than it can generate by itself; for example, Facebook was valued at $104 billion after its IPO in 2012 and Twitter reached $25 billion in 2014. Meanwhile, private placements are used to raise funds for companies that aren't yet ready to go public like Tesla, SpaceX, and Airbnb.

There are several other key differences between IPOs and private placements as well. If you need legal help with a private placement, please call this law firm below for a free consultation.

Ascent Law LLC

8833 S Redwood Rd Ste C

West Jordan UT 84088

(801) 676-5506

https://g.page/AscentLaw

https://www.ascentlawfirm.com/are-private-placements-good/

Utah business attorney free consultation

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