Initial Public Offering (IPO)

An initial public offering (IPO) is the process during which a private company offers its shares to the public for the first time on a stock exchange, thereby becoming a publicly traded company. IPOs enable companies to raise capital from outside investors, increase market exposure, and provide liquidity for early investors and founders. The IPO process involves the company working with investment banks to underwrite and market the offering, filing required disclosures with securities regulators, and setting the initial share price for public trading.