What Is IPO (Initial Public Offering)? Meaning & Example
Definition
An IPO is when a private company first sells shares to the public and lists on a stock exchange. It lets the company raise money and gives early owners a way to sell.
Related terms
A stock exchange is a regulated marketplace where shares of public companies are bought and sold. It provides rules, transparency and a central place for buyers and sellers to meet.
StockA stock represents partial ownership in a company. Owning shares gives you a claim on part of the company's assets and profits, and sometimes voting rights.
Market CapitalizationMarket capitalization is the total value of a company's shares, found by multiplying the share price by the number of shares outstanding. It is a quick way to gauge company size.
What is IPO (Initial Public Offering)?
An IPO is when a private company first sells shares to the public and lists on a stock exchange. It lets the company raise money and gives early owners a way to sell.
Can you give an example of IPO (Initial Public Offering)?
A startup that lists on an exchange and sells 10 million new shares to investors is completing an IPO.