Initial Public Offerings (IPO)

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 by selling ownership stakes to investors, often to fund growth or pay off debt. Once the IPO is completed, the company's shares are traded on a stock exchange. This transition from private to public status increases transparency and regulatory scrutiny, as the company must now disclose financial and operational information regularly. IPOs can provide significant returns for early investors but can also be risky due to market fluctuations.