Public Offering Price (POP)

The price at which fresh issues of stock are made available to the general public by an underwriter is known as the public offering price (POP). Underwriters must choose a public offering price that will appeal to investors because the primary objective of an initial public offering (IPO) is to raise capital. The soundness of the company's financial accounts, its level of profitability, prevailing trends in the marketplace, growth rates, and even investor confidence are all taken into account by underwriters when determining the public offering price.