Definition for: Hot IPO
A "hot IPO" is a highly anticipated initial public offering (IPO) of shares of stock. The IPO is the first offering of a company's stock, and some companies generate high demand for their shares when they go public. Hot IPOs are characterized by rapid, sometimes astronomical gains in the share price of the stock on the first day of trading. These gains are sometimes followed by volatility or a sharp drop in the share price when the frenzy stops.
