Initial Public Offering (IPO)

An Initial Public Offering (IPO) is the process by which a private company offers its shares to the public for the first time. By going public, the company can raise capital from investors to fund growth, pay off debt, or for other business needs. In return, investors get a chance to own a part of the company and potentially profit from its success. Once a company completes an IPO, its shares are traded on a stock exchange, making its financial performance subject to public scrutiny. This transition also adds regulatory responsibilities for the company.