Logo
    Search

    The Five-Minute Investor from Money Clinic: What’s an IPO?

    enJune 04, 2024

    Podcast Summary

    • Financial literacy, Authentic communicationFinancial literacy and authentic communication are essential for success in personal and financial spheres. Understanding financial terms allows for informed decisions, while authentic conversations help build meaningful relationships.

      Understanding financial terms is essential for making informed decisions about your money, whether it's investing in the stock market or finding a compatible partner on a dating app. Coriant, a leading wealth management firm, emphasizes the importance of customized solutions for reaching financial goals. They encourage listeners to connect with a wealth adviser to navigate complex financial situations. Eharmony, a popular dating app, encourages authentic conversations by discouraging copy-pasted messages. They believe that unique conversations help users find meaningful connections. The Financial Times' "5 Minute Investor" podcast aims to demystify investment terms in just five minutes. This week, they discussed the term "IPO," or Initial Public Offering, with Rob Armstrong. An IPO is the first time a company offers its shares for sale on a public market. Entrepreneurs, like those starting a family widget business, can use IPOs to raise capital and expand their businesses. In essence, being financially literate and able to communicate authentically are crucial for success in both personal and financial spheres. Whether you're seeking investment opportunities or looking for love, being informed and genuine can lead to better outcomes.

    • IPO sharesDuring an IPO, the investment banker determines the value of each share and distributes them to investors, resulting in potential profits from the increase in share value

      A share represents a fractional ownership in a business or enterprise. When a business owner decides to sell their company to the public through an Initial Public Offering (IPO), the investment banker determines the value of each share, and the shares are then distributed to investors. The IPO process involves the investment banker selling the shares to brokers, who in turn distribute them to the public. The value of a share can significantly increase during the IPO, resulting in profits for early investors. A notable recent example is Reddit, which went public at $36 per share and immediately rose to $65. This pop on the first day of trading is significant as it allows various parties involved in the process to earn profits.

    • IPO VolatilityInvesting in IPOs involves significant risk and potential for volatility, with prices not set in stone until trading begins on the open market. Research and seeking advice from financial professionals is crucial.

      Investing in Initial Public Offerings (IPOs) can be a risky business with significant volatility. Despite the excitement surrounding a company's debut on the stock market and the potential for substantial gains, there is also a risk of significant losses. As seen with the example of Reddit, shares can experience a steep decline after an initial pop. It's important for investors to be prepared for this volatility and understand that the price of IPO shares is not set in stone until they begin trading on the open market. There are fewer IPOs in the pipeline compared to boom years, but notable ones are coming up, including Kim Kardashian's Shapewear Company (SKIMS). Ultimately, whether or not it's a good idea to invest in an IPO depends on an individual's risk tolerance and investment strategy. As always, it's essential to do thorough research and consider seeking advice from financial professionals.

    • Investment advice resourcesFor clarification on investment terms, contact Money Clinic. For personalized investment recommendations, consult an independent financial adviser. Coriant offers customized wealth management solutions. Check out the Money Clinic and 5 Minute Investor for informational resources.

      If you're confused by investment terms or jargon, you can reach out to the Money Clinic for clarification. You can email money@ft.com or find them on Instagram and TikTok. The 5 Minute Investor podcast is a general discussion on financial topics, but for personalized investment recommendations or financial advice, it's essential to consult an independent financial adviser. Coriant is a wealth management firm that offers customized solutions to help individuals reach their financial goals. Listeners can connect with a wealth advisor at coriant.com. The Money Clinic and 5 Minute Investor episodes are available for browsing, and new episodes will be coming soon. Remember, the 5 Minute Investor is for informational purposes only and does not provide individual financial advice.

    Recent Episodes from Money Clinic with Claer Barrett

    Can financial therapy change our relationship with money?

    Can financial therapy change our relationship with money?

    Prepare to take a seat on the therapist’s couch and discover what your money habits say about you. In this episode, host Claer Barrett sits down with the UK’s first financial therapist, Vicky Reynal whose new book, Money on Your Mind: The Psychology Behind Your Financial Habits, aims to help people untangle problematic aspects of their relationship with money. They discuss the symbolic nature of money, what can make one person a spender and another a saver, and how equipping yourself with this knowledge can empower you to change negative behaviours around money.


    Want more?

    Check out Claer’s column, What I wish I’d known before my smartphone was snatched.

    Listen to more episodes, such as Money and relationships: a crash course, Investment masterclass: The psychology of money, The high cost of being a wedding guest, and more.

    For more tips on how to organise your money, sign up to Claer's email series 'Sort Your Financial Life Out With Claer Barrett' at FT.com/moneycourse

    If you would like to be a guest on a future episode of Money Clinic, email us at money@ft.com or send Claer a DM on social media — she’s @ClaerB on Twitter, Instagram and TikTok. 


    Presented by Claer Barrett. Produced by Tamara Kormornick. Our executive producer is Manuela Saragosa. Sound design by Breen Turner, with original music from Metaphor Music. Cheryl Brumley is the FT’s global head of audio.


    Read a transcript of this episode on FT.com



    Hosted on Acast. See acast.com/privacy for more information.


    The Five Minute Investor from Money Clinic: What is a PE ratio?

    The Five Minute Investor from Money Clinic: What is a PE ratio?

    When we talk about the relative value of our investments, PE ratios are never far away from the conversation - but what does this mean, and what exactly goes into this calculation? In the latest episode of our Five Minute Investor miniseries, FT consumer editor Claer Barrett challenges FT investment columnist Stuart Kirk to break down the ‘price’ and ‘earnings’ parts of the equation, and elucidate on other ways the PE ratio is used by investors to benchmark the relative value of different shares and other assets in their portfolio. 


    Tune in every Tuesday to catch the latest episode of the Five Minute Investor, and subscribe to Money Clinic wherever you get your podcasts. If you would like Claer to demystify an investment term, email the team at money@ft.com or send Claer a DM on social media — she’s @ClaerB on Instagram and TikTok.


    For more tips on how to organise your money, sign up to Claer's email series 'Sort Your Financial Life Out With Claer Barrett' at FT.com/moneycourse


    Want more?

    Check out Claer’s column, Have you got five minutes to talk about investing?

    Read Stuart Kirk’s latest Skin in the Game column for free.

    Listen to Money Clinic’s Investment Masterclasses, such as Stuart Kirk has ‘skin in the game’, ‘Money is basically a fiction’, and more.

    Disclaimer: The Money Clinic podcast is a general discussion about financial topics and does not constitute an investment recommendation or individual financial advice.


    Presented by Claer Barrett. Produced by Tamara Kormornick. Our executive producer is Manuela Saragosa. Sound design by Breen Turner, with original music from Metaphor Music. Cheryl Brumley is the FT’s global head of audio.


    Read a transcript of this episode on FT.com



    Hosted on Acast. See acast.com/privacy for more information.


    The Five-Minute Investor from Money Clinic: What’s an IPO?

    The Five-Minute Investor from Money Clinic: What’s an IPO?

    With a string of companies preparing to launch stock market listings on both sides of the Atlantic, investors may be tempted to invest in an IPO. But when companies stage an initial public offering, what are the factors to consider? In our new miniseries, The Five-Minute Investor, consumer editor Claer Barrett challenges Rob Armstrong, co-host of FT’s Unhedged podcast and author of the Unhedged newsletter, to explain why companies go public, and the risks of getting carried away with investing on the first day of public trading.


    Tune in every Tuesday to catch the latest episode of The Five-Minute Investor, and subscribe to Money Clinic wherever you get your podcasts. If you would like Claer to demystify an investment term, email the team at money@ft.com or send Claer a DM on social media — she’s @ClaerB on Instagram and TikTok.


    For more tips on how to organise your money, sign up to Claer's email series 'Sort Your Financial Life Out With Claer Barrett' at FT.com/moneycourse


    Want more?

    Listen to Unhedged wherever you get your podcasts, read Rob Armstrong’s latest Unhedged newsletter, and sign up to a free 30-day trial of the Unhedged newsletter: https://www.ft.com/unhedgedoffer

    Check out Claer’s column, Have you got five minutes to talk about investing?

    Listen to Money Clinic’s Investment Masterclasses, such as An insider's view of the City of London, What’s one of the world’s leading investors buying?, and more.


    Disclaimer: The Money Clinic podcast is a general discussion about financial topics and does not constitute an investment recommendation or individual financial advice.


    Presented by Claer Barrett. Produced by Tamara Kormornick. Our executive producer is Manuela Saragosa. Sound design by Breen Turner, with original music from Metaphor Music. Cheryl Brumley is the FT’s global head of audio.


    Read a transcript of this episode on FT.com



    Hosted on Acast. See acast.com/privacy for more information.


    The Five-Minute Investor from Money Clinic: What is a yield?

    The Five-Minute Investor from Money Clinic: What is a yield?

    Like an interest rate on a savings account, investment yields show us how much income different investments are able to generate. But how are yields calculated, and how can they measure the returns on different types of investments including shares, bonds and property? 

    In our new miniseries, The Five-Minute Investor, consumer editor Claer Barrett asks FT markets columnist and Unhedged co-host Katie Martin to give practical examples of how yields can be used as a benchmark for different assets, and how to interpret the story behind the numbers.


    Tune in every Tuesday to catch the latest episode of The Five-Minute Investor, and subscribe to Money Clinic wherever you get your podcasts. If you would like Claer to demystify an investment term, email the team at money@ft.com or send Claer a DM on social media — she’s @ClaerB on Instagram and TikTok.


    For more tips on how to organise your money, sign up to Claer's email series 'Sort Your Financial Life Out With Claer Barrett' at FT.com/moneycourse.


    Want more?


    Listen to Unhedged wherever you get your podcasts, and read Katie Martin’s column on the topic, How the humble dividend might rise again.


    Check out Claer’s Lunch with investor and ‘Dragon’s Den’ star Deborah Meaden.


    Listen to Money Clinic’s investment masterclasses, such as Deborah Meaden on her life in business, An insider's view of the City of London, and more.


    Presented by Claer Barrett. Produced by Tamara Kormornick. Our executive producer is Manuela Saragosa. Sound design by Breen Turner, with original music from Metaphor Music. Cheryl Brumley is the FT’s global head of audio.


    Disclaimer: The Money Clinic podcast is a general discussion about financial topics and does not constitute an investment recommendation or individual financial advice.


    Read a transcript of this episode on FT.com



    Hosted on Acast. See acast.com/privacy for more information.


    The Five-Minute Investor from Money Clinic: What’s a bull market?

    The Five-Minute Investor from Money Clinic: What’s a bull market?

    Global stock markets are charging along breaking record after record — but what’s driving this ‘bull market’ and how much longer can it last? Plus, what could it mean for investors if a ‘bear market’ awakens from hibernation? In our new miniseries, The Five-Minute Investor, consumer editor Claer Barrett challenges Rob Armstrong, co-host of FT’s Unhedged podcast and author of the Unhedged newsletter, to explain the factors that drive bull and bear markets, and if individual investors should reconsider their strategy.


    Links:

    Free pound cost averaging calculator: https://www.hl.co.uk/tools/calculators/regular-investing-calculator


    Free dollar cost averaging calculator: https://www.buyupside.com/calculators/dollarcostave.php


    Tune in every Tuesday to catch the latest episode of The Five-Minute Investor, and subscribe to Money Clinic wherever you get your podcasts. If you would like Claer to demystify an investment term, email the team at money@ft.com or send Claer a DM on social media — she’s @ClaerB on Instagram and TikTok.


    For more tips on how to organise your money, sign up to Claer's email series 'Sort Your Financial Life Out With Claer Barrett' at FT.com/moneycourse


    Want more?


    Listen to Unhedged wherever you get your podcasts, read Rob Armstrong’s Unhedged newsletter on the topic, A better bull market?, and sign up to a free 30-day trial of the Unhedged newsletter: https://www.ft.com/unhedgedoffer


    Check out Claer’s column, Have you got five minutes to talk about investing?


    Listen to Money Clinic’s Investment Masterclasses, such as An insider's view of the City of London, What’s one of the world’s leading investors buying?, and more.


    Presented by Claer Barrett. Produced by Tamara Kormornick. Our executive producer is Manuela Saragosa. Sound design by Breen Turner, with original music from Metaphor Music. Cheryl Brumley is the FT’s global head of audio.


    Disclaimer: The Money Clinic podcast is a general discussion about financial topics and does not constitute an investment recommendation or individual financial advice.


    Read a transcript of this episode on FT.com



    Hosted on Acast. See acast.com/privacy for more information.


    The Five-Minute Investor from Money Clinic: The power of compounding

    The Five-Minute Investor from Money Clinic: The power of compounding

    ‘The two most powerful warriors are patience and time,’ Leo Tolstoy once wrote. But how can this make you a richer investor? The answer is compounding, and in our new miniseries, The Five-Minute Investor, consumer editor Claer Barrett challenges Bobby Seagull, the TV star and mathematics teacher, to demonstrate how compounding can power up our long-term investments. 


    Tune in every Tuesday to catch the latest episode of The Five-Minute Investor, and subscribe to Money Clinic wherever you get your podcasts. If you would like Claer to demystify an investment term, email the team at money@ft.com or send Claer a DM on social media — she’s @ClaerB on Instagram and TikTok.


    Try out a compound interest calculator, and read more about INC and ACC funds.


    Take a look at MoneySavingExpert’s credit card minimum repayment calculator.


    For more tips on how to organise your money, sign up to Claer's email series 'Sort Your Financial Life Out With Claer Barrett' at FT.com/moneycourse


    Want more?


    Check out Claer’s column, Why do we think we can beat the market?


    Listen to Money Clinic’s Investment Masterclasses, such as An insider's view of the City of London, What’s one of the world’s leading investors buying?, and more.


    Presented by Claer Barrett. Produced by Tamara Kormornick. Our executive producer is Manuela Saragosa. Sound design by Breen Turner, with original music from Metaphor Music. Cheryl Brumley is the FT’s global head of audio.


    Disclaimer: The Money Clinic podcast is a general discussion about financial topics and does not constitute an investment recommendation or individual financial advice.


    Read a transcript of this episode on FT.com



    Hosted on Acast. See acast.com/privacy for more information.


    The Five Minute Investor from Money Clinic: Are share buybacks good news for investors?

    The Five Minute Investor from Money Clinic: Are share buybacks good news for investors?

    Share buybacks have been in the news as Apple announced what would be the largest buyback in US history. But why is the US tech giant purchasing $110bn of its own shares, and cancelling them? In the latest episode of our Five Minute Investor miniseries, FT consumer editor Claer Barrett quizzes FT investment columnist Stuart Kirk on why more and more companies are doing this — and how investors can benefit. 


    Tune in every Tuesday to catch the latest episode of the Five Minute Investor, and subscribe to Money Clinic wherever you get your podcasts. If you would like Claer to demystify an investment term, email the team at money@ft.com or send Claer a DM on social media — she’s @ClaerB on Instagram and TikTok.


    For more tips on how to organise your money, sign up to Claer's email series 'Sort Your Financial Life Out With Claer Barrett' at FT.com/moneycourse


    Want more?

    Check out Claer’s column, Have you got five minutes to talk about investing?

    Read Stuart Kirk’s latest Skin in the Game column for free.

    Listen to Money Clinic’s Investment Masterclasses, such as Stuart Kirk has ‘skin in the game’, ‘Money is basically a fiction’, and more.


    Presented by Claer Barrett. Produced by Tamara Kormornick. Our executive producer is Manuela Saragosa. Sound design by Breen Turner, with original music from Metaphor Music. Cheryl Brumley is the FT’s global head of audio.


    Disclaimer: The Money Clinic podcast is a general discussion about financial topics and does not constitute an investment recommendation or individual financial advice.


    Read a transcript of this episode on FT.com



    Hosted on Acast. See acast.com/privacy for more information.


    The Five Minute Investor from Money Clinic: Why liquidity matters for investors

    The Five Minute Investor from Money Clinic: Why liquidity matters for investors

    In the age of the smartphone, it’s never been easier to buy an investment — but how quickly can you sell one, and how might this affect the price? In our new miniseries, The Five Minute Investor, consumer editor Claer Barrett challenges investment commentator Justin Urquhart-Stewart to explain why liquidity should be at the forefront of every investor’s mind.


    Tune in every Tuesday to catch the latest episode of the Five Minute Investor, and subscribe to Money Clinic wherever you get your podcasts. If you would like Claer to demystify an investment term, email the team at money@ft.com or send Claer a DM on social media — she’s @ClaerB on Instagram and TikTok.


    For more tips on how to organise your money, sign up to Claer's email series 'Sort Your Financial Life Out With Claer Barrett' at FT.com/moneycourse


    Want more?

    Check out Claer’s column, Why do we think we can beat the market?

    Listen to Money Clinic’s Investment Masterclasses, such as An insider's view of the City of London with today’s guest Justin Urquart-Stewart, What’s one of the world’s leading investors buying?, and more.

    Presented by Claer Barrett. Produced by Tamara Kormornick. Our executive producer is Manuela Saragosa. Sound design by Breen Turner, with original music from Metaphor Music. Cheryl Brumley is the FT’s global head of audio.


    Disclaimer: The Money Clinic podcast is a general discussion about financial topics and does not constitute an investment recommendation or individual financial advice.


    Read a transcript of this episode on FT.com



    Hosted on Acast. See acast.com/privacy for more information.


    The Five Minute Investor from Money Clinic: Magnificent Seven

    The Five Minute Investor from Money Clinic: Magnificent Seven

    The Magnificent Seven could make up a much bigger slice of your own portfolio than you realise, but what are these seven stocks, and why are they so dominant? In our new miniseries The Five Minute Investor, consumer editor Claer Barrett challenges FT markets columnist Katie Martin to explain the hype around these gigantic US stocks.


    Tune in every Tuesday to catch the latest episode of the Five Minute Investor, and subscribe to Money Clinic wherever you get your podcasts. If you would like Claer to demystify an investment term, email the team at money@ft.com or send Claer a DM on social media — she’s @ClaerB on Twitter, Instagram and TikTok.

    For more tips on how to organise your money, sign up to Claer's email series 'Sort Your Financial Life Out With Claer Barrett' at FT.com/moneycourse


    Want more?

    Read Claer’s recent column that looked at how exposed the index funds in her portfolio were to the Magnificent Seven - and if this was a good or bad thing: free to read link here 


    Check out Katie Martin’s most recent FT column, which looks at how the Magnificent Seven share prices are coming under pressure: free to read link here 

    Listen to more episodes of Money Clinic, such as The case for investing in AI, WTF are ETFs?, and more.


    Presented by Claer Barrett. Produced by Tamara Kormornick. Our executive producer is Manuela Saragosa. Sound design by Breen Turner, with original music from Metaphor Music. Cheryl Brumley is the FT’s global head of audio.


    Disclaimer: The Money Clinic podcast is a general discussion about financial topics and does not constitute an investment recommendation or individual financial advice.


    Read a transcript of this episode on FT.com



    Hosted on Acast. See acast.com/privacy for more information.


    Investment Masterclass: confessions of a top ex-Citibank trader

    Investment Masterclass: confessions of a top ex-Citibank trader

    ‘If I try to put myself back into the shoes of me as a 21-year-old, all I can tell you is this: I was hungry,’ writes Gary Stevenson in his recently released memoir, The Trading Game, which tells the story of how the son of a Post Office worker briefly became the highest-paid trader working on Citi’s bond trading floor at London’s Canary Wharf. He sits down with host Claer Barrett to talk about what he learned about trading and how the wider economy works – and why he’s worried.


    Find Gary @garyseconomics on YouTube, X, Facebook, Instagram and TikTok. Read Gary Stevenson’s recent FT Magazine profile by Miles Ellingham.


    For more tips on how to organise your money, sign up to Claer's email series 'Sort Your Financial Life Out With Claer Barrett' at FT.com/moneycourse

    If you would like to be a guest on a future episode of Money Clinic, email us at money@ft.com or send Claer a DM on social media — she’s @ClaerB on X, Instagram and TikTok. 


    Want more?

    Check out Claer’s column, The hunt for good value UK stocks.

    Listen to more episodes, such as Investment Masterclass: An insider's view of the City of London, Investment masterclass: what’s one of the world’s leading investors buying?, and more. 


    Presented by Claer Barrett. Produced by Tamara Kormornick. Our executive producer is Manuela Saragosa. Sound design by Breen Turner, with original music from Metaphor Music. Cheryl Brumley is the FT’s global head of audio.


    Read a transcript of this episode on FT.com



    Hosted on Acast. See acast.com/privacy for more information.