Initial Public Offering

An Initial Public Offering (IPO) is the process by which a private company offers its shares to the public for the first time. This allows the company to raise capital from a wide range of investors, including individuals and institutions. Typically, an IPO involves the company working with investment banks to determine the share price and to prepare the necessary legal and financial documentation. Once the shares are sold on a stock exchange, the company becomes publicly traded. An IPO can provide funds for growth and attract greater visibility, but it also involves ongoing regulatory requirements and increased transparency.