IPO
From CryptoWiki
- Initial Public Offering; for stocks.
- While ICO’s often use a technical whitepaper to market to investors, IPO’s need a comprehensive prospectus and register with regulators. In the U.S., companies seeking to IPO must file a registration statement with the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), as well as file in the states in which it intends to offer the securities.
- With the SEC involved, the overall process can take up to six months for the filing to be effective. During that time, the company’s activities are restricted and they usually have to work with the SEC back and forth to ensure compliance. The burdensome IPO process weeds out most scammers and incompetent actors.
