Initial Public Offering (IPO)
An Initial Public Offering (IPO) is the process whereby a private company offers its shares to the public for the first time. IPOs allow companies to raise capital, enhance their public profile, and provide liquidity for early investors. They are a key milestone in a company’s lifecycle, enabling access to public capital markets and creating opportunities for growth and expansion.
Key Takeaways
- First time a company offers shares to the public.
- Allows companies to raise capital and gain liquidity.
- Key milestone in transitioning to a public entity.
- Opens access to public capital markets for growth.