what purpose does an IPO serve and how does an IPO benefit the REIT?
In: Economics
An IPO is when a company begins selling stock to the public, the purpose of which is to fund the company’s operations and allow founders and investors to begin cashing in on their equity in the company. a REIT is a company that owns and operates real estate, and has some specific acounting/tax differences from other types of public companies, but the goal of a REIT IPO would be the same as any other company — money to invest into the business (in this case, real estate) and allow pre-IPO shareholders to be able to more easily sell shares.
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