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.

Last Updated By

Rachel Blakely-Gray | Apr 12, 2023

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