IPO University

Short for Electronic Data Gathering, Analysis, and Retrieval, EDGAR is a system established by the SEC and used by companies and mutual funds to file documents electronically. It is significant to individual investors, because you can directly access the EDGAR filing room on the Internet (www.sec.gov/edgar) and retrieve IPO prospectuses, annual reports and quarterly filings.

Established in 2012 under the JOBS Act, emerging growth companies (EGCs) have less than $1 billion in annual sales, and have fewer requirements for going public. They are allowed to IPO with two years of audited financial statements instead of three, do not need an auditor's opinion on their internal controls over financial reporting, and can use test-the-waters communications with institutional accredited investors.

A strategy that emphasizes investing in companies whose stock prices are likely to be strongly affected by an anticipated significant news event or circumstance.