A company's initial public offering - its first sale of stock - is referred to as an IPO. In the early stages of a company's development, it is considered 'private' since only early investors have access to its shares. In an IPO, share ownership is opened up to the public, which is why it's also referred to as floating or flotation.

An IPO occurs when a company lists a certain number of shares on a stock exchange to raise investment capital. Companies can raise capital in a variety of ways, such as through IPOs, crowdfunding, or retained earnings.

An Initial Public Offering (IPO) is the process through which a private company offers its shares to the public for the first time, transforming into a publicly traded entity. Companies pursue IPOs to raise capital for expansion, pay off debts, or fund new projects. The process involves issuing shares on a stock exchange, allowing investors to purchase equity in the company.

IPO pricing is typically determined through book-building or fixed pricing methods, with investment banks often acting as underwriters. While IPOs provide companies with significant funding and increased visibility, they also subject them to regulatory scrutiny and public accountability. For investors, IPOs present opportunities for growth but carry risks due to market volatility and uncertainty about the company’s future performance.