The American Capital Corporation (ACC) first went public in 1997, when it conducted an initial public offering (IPO) on the NASDAQ stock exchange. The IPO was a success, with the shares of ACC rising from $17 to $21 on the first day of trading. The IPO raised more than $5 million, which was used to fund the company's expansion.
What Is an Initial Public Offering (IPO)?
An initial public offering (IPO) is when a company first offers its shares of stock to the public. This is typically done to raise capital for the company, which it can use to expand or develop new products or services. An IPO also allows the company to access new sources of financing and can be a way to reward early investors or founders of the company.What Is the American Capital Corporation (ACC)?
The American Capital Corporation (ACC) is a publicly traded, closed-end investment company that invests in debt and equity securities. It was founded in 1986 and is headquartered in Dallas, Texas. The company offers a variety of services, including asset management, financial planning, and investment banking.What Was the Price of ACC Shares on the First Day of Trading?
The price of ACC shares on the first day of trading was $17. The shares quickly rose to $21 by the end of the day, indicating that the IPO was a success. This initial success was a sign of the potential for growth for the American Capital Corporation.What Was the Result of the ACC IPO?
The result of the ACC IPO was a success, with the company raising more than $5 million in capital. This money was used to fund the company's expansion and growth, allowing it to develop new products and services. The IPO also allowed the company to access new sources of financing and rewarded early investors and founders of the company.People Also Ask
What Is an Investment Company?
An investment company is a company that invests in securities such as stocks, bonds, and other assets. Investment companies can be publicly traded or privately owned.What Is the Difference Between a Publicly Traded and a Privately Owned Investment Company?
A publicly traded investment company is one whose shares are traded on a public stock exchange such as the NASDAQ or the New York Stock Exchange. A privately owned investment company is one whose shares are not publicly traded and are not traded on any public exchange.What Is the Difference Between a Closed-End and an Open-End Investment Company?
A closed-end investment company is one whose shares are not redeemable, meaning that investors must buy and sell the shares through the stock market. An open-end investment company is one whose shares are redeemable, meaning that investors can redeem their shares for cash.What Types of Securities Does ACC Invest In?
The American Capital Corporation invests in both debt and equity securities. This includes stocks, bonds, mutual funds, and other investments.In conclusion, the American Capital Corporation (ACC) first went public in 1997 through an initial public offering on the NASDAQ stock exchange. The IPO was a success, with the shares of ACC rising from $17 to $21 on the first day of trading. The IPO raised more than $5 million, which was used to fund the company's expansion. ACC is a publicly traded, closed-end investment company that invests in debt and equity securities, including stocks, bonds, and mutual funds. The success of the IPO was a sign of the potential for growth for the American Capital Corporation.