What Is an IPO? | Beginner’s Guide to Initial Public Offerings
What is an Initial Public Offering (IPO)?
An Initial Public Offering (IPO) is when a private company offers its shares to the public for the first time on a stock exchange. This milestone marks the company’s transition from private to public ownership, allowing anyone, not just early investors or insiders, to buy and sell its stock. It’s a significant step that helps companies raise capital, increase visibility and expand their investor base.
Before an IPO, a company is privately held, meaning its ownership rests with founders, employees, and a small group of private investors such as venture capital or private equity firms. Once the company goes public, its shares become publicly traded, which means they can be freely bought and sold…
