IPO Intelligence Glossary
A B C D E-F G H I-J K-L M-N O P Q R S T U V-Z
M-N
Market Capitalization
The total market value of a firm. It is defined as the product of
the company's stock price per share and the total number of shares
outstanding. The market cap should not be confused with the float,
which is the amount of shares in circulation. A company's market
cap can greatly exceed the float, especially in the case of a new
publicly traded company.
Market Value
The market value of a company is determined by multiplying the number
of shares outstanding by the current price of the stock.
Net Offerings
The SEC for years has allowed small companies to bypass the expensive
system of using an underwriter through the Small Company Offering
Registration process. The number of companies opting for a direct
public offering has increased with the advent of electronic commerce
on the Internet.
Net Road Show
The Internet has opened up a new way for companies to sell their
deals to the public. Underwriters are starting to post on their
web sites the presentation that management makes to institutional
investors. These net road shows range from the video of an actual
road show presentation, complete with questions from investors,
to slides accompanied by audio. Regrettably, underwriters limit
access to net road shows to institutional investors by requiring
passwords and changing them frequently.
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