Initial Public Offerings

An Initial Public Offering (IPO) is when a private company first sells its shares to the public to raise money for growth, pay debts, or other expenses. By becoming publicly traded, the company allows investors to buy a piece of the business. This process involves determining a share price and is usually managed by investment banks. Once the company goes public, its shares are traded on stock exchanges, allowing for greater visibility and access to capital but also subjecting it to public scrutiny and regulatory requirements.