Key Concepts
IPO ProcessInitial Public Offering: filing S-1, roadshow, book building, pricing, listing. Typically takes 6–9 months.
Book BuildingProcess of collecting investor demand to determine final offer price. Lead underwriters gauge institutional interest.
Greenshoe OptionOver-allotment option allowing underwriters to sell up to 15% more shares. Used to stabilize post-IPO price.
Follow-On OfferingSale of additional shares by already-public company. Can be primary (new shares) or secondary (existing shares).
Debt IssuanceCorporate bond offering. Key terms: coupon, maturity, covenants, call provisions, credit rating.
Credit RatingAssessment of borrower's creditworthiness by agencies (S&P, Moody's, Fitch). Investment grade = BBB−/Baa3 and above.
Yield to Maturity (YTM)Total return anticipated if bond held to maturity. Includes coupon payments and capital gain/loss.
LIBOR vs SOFRLIBOR = interbank offered rate (being phased out); SOFR = Secured Overnight Financing Rate (new benchmark).