IPO (Initial Public Offering) Definition

Definition
An IPO (Initial Public Offering) is the stocks that are sold when a company goes from being private to a publicly held business.

Expanded Definition
A business may choose to “go public” in order to get a large influx of cash. The process involves working with an investment bank or underwriting firm to set the date and opening price. The business is commonly in a growth stage, and will need to communicate with shareholders when it becomes publicly traded.

Related Blog Article
What Is an IPO?
An Overview of Employee Stock Ownership Plans (ESOP)