IPO (Initial Public Offering)

An Initial Public Offering (IPO) is when a company first sells its shares to the public, allowing anyone to buy a portion of the company. This process helps the company raise money to fund growth, pay off debt, or invest in new projects. Once the IPO occurs, the company becomes publicly traded, meaning its shares are listed on a stock exchange, and their prices can fluctuate based on market demand. IPOs are often seen as a significant step for a company, as they transition from private ownership to being accountable to public shareholders.