What Is An IPO? The term "IPO" is an acronym
for "initial public offering".
An initial public offering is a company's first sale
of stock to the general public.
This is the first time that the company has enabled
the general public to become
shareholders in the company. This is what the Wall
Street phrase "going
public" means.
A company will go public in order to raise money. When
the company
executes the IPO, their stock will be listed on a
stock exchange for the first
time. The general public will then have the
opportunity to buy the stock and
become shareholders in the company. The company will
then use this
money for the benefit of the company. They may use it
to pay off debt,
build new plants, increase their workforce, or a
variety of other things.

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