An initial public offering (IPO) refers to the sale of shares of a private company to the general public as part of a new stock offering. A company can raise money from the general public by selling its stock in an IPO. During the changeover from a privately held to a publicly traded company, private investors can benefit from their investment as the changeover often entails a share premium for current shareholders. Additionally, it allows the general public to participate in the offering.

An Initial Public Offering (IPO) is the process through which a private company offers its shares to the public for the first time, becoming a publicly traded company on a stock exchange. The primary purpose of an IPO is to raise capital for expansion, debt repayment, or other corporate needs.

Before an IPO, the company works with investment banks to determine the share price, file regulatory documents, and market the offering to investors. Once listed, the company’s shares can be bought and sold by the public, increasing liquidity and visibility.

IPOs provide investors with an opportunity to invest in growing companies early, but they also carry risks due to market volatility. Successful IPOs can boost a company’s reputation and financial strength.

An Initial Public Offering (IPO) is the process through which a private company offers its shares to the public for the first time, becoming a publicly traded company. By going public, the company raises capital from investors, which can be used for expansion, debt repayment, or other business needs.

Before an IPO, the company works with investment banks to determine the share price, file regulatory documents (like a prospectus), and meet stock exchange requirements. Once listed, shares can be bought and sold on the open market.

IPOs provide liquidity to early investors and employees but also bring greater scrutiny, regulatory compliance, and market volatility. Famous examples include Facebook (2012) and Alibaba (2014).