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Also known as: Initial Public Offering, going public

IPO

ConceptualFundraisingFinance

Definition

IPO: An Initial Public Offering (IPO) is when a private company offers shares to the public for the first time on a stock exchange. IPOs provide liquidity for existing shareholders, raise capital, and increase company visibility, but also bring regulatory requirements and scrutiny.

Example Usage

“After our IPO at $50/share, early employees could finally sell their vested stock.”

Common Misconceptions

IPO is the ultimate success. It's a financing event, not the finish line.
Any successful company should IPO. Many successful companies stay private or get acquired.
IPO day is when you get rich. Lock-up periods prevent immediate selling.

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