IPO (Initial Public Offering) Definition

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

IPO 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 Articles
What Is An IPO?
Understanding an Employee Stock Ownership Plan

Last Updated By

Rachel Blakely-Gray | Apr 12, 2023

Check out Our Accounting Software

See a Demo

Back to Top