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IPO (Initial Public Offering) Definition

May 12, 2015

Mike Kappel

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)

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