[floh-tey-shuh
n] 
| 1. | an act or state of floating. |
| 2. | the launching of a commercial venture, bond issue, loan, etc. |
| 3. | Metallurgy. a process for separating the different minerals in a mass of powdered ore based on their tendency to sink in, or float on, a given liquid. |
| 4. | the science of floating bodies. |
| flo·ta·tion also float·a·tion (flō-tā'shən) n.
|
Flotation
The process of changing a private company into a public company by issuing shares and soliciting the public to purchase them.
Investopedia Commentary
By doing an IPO, the company is able to obtain financing from sources outside of its regular business. This helps finance projects that return the founder's initial investment. Also known as "going public."
See also: Corporate Finance, IPO, Private Equity
flotation flo·ta·tion (flō-tā'shən)
n.
The process of separating different materials, especially minerals, by agitating a pulverized mixture of the materials with water, oil, and chemicals. Differential wetting of the suspended particles causes unwetted particles to be carried by air bubbles to the surface for collection.