Going public through the backdoor


The process by which a company comes to have publicly traded shares without an IPO. This could happen through a reverse shell merger, or through acquisition of a public company and offering shares to previous owners. Another way is through a series of private placements, selling shares on an exchange to institutional and other sophisticated investors.

Investing Essentials

Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day


Order ticket that shows the stock, price, number of shares, type, and account of the order. Origin: Practice of placing the ticket on a metal spike upon execution or cancellation. Spike is also a... Read More

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