Investing term

What is IPO?

Initial Public Offering — the first time a company sells shares to the public.

An IPO (Initial Public Offering) is the first time a company sells shares to the public, moving from private ownership to a listing on a stock exchange. It lets the company raise capital and gives early backers a way to cash out. For ordinary investors, IPOs are often hyped and volatile — the excitement can push the price well past what the business is worth.