Direct Public Offering (DPO)
When a company raises capital by marketing its shares directly to its own customers, employees, suppliers, distributors and friends in the community. DPOs are an alternative to underwritten public offerings by securities broker-dealer firms where a company's shares are sold to the broker's customers and prospects. Investopedia Says:
Direct public offerings are considerably less expensive than traditional underwritten offerings. Additionally, they don't have the restrictions that are usually associated with bank and venture capital financing. On the other hand, a DPO will typically raise much less than a traditional offering. Related Terms:
Dutch Auction
Initial Public Offering - IPO
New Fund Offer - NFO
Primary Offering
Public Offering Price - POP
Underwriting |