Initial Public Offering (IPO)

An Initial Public Offering (IPO) is when a private company sells shares to the public for the first time, becoming a publicly traded company. Before an IPO, a company is owned by founders, investors, and employees—but those shares aren't available to regular people like you. After an IPO, anyone can buy a piece of the company through a stock exchange. You'll hear about IPOs in financial news because they're major milestones: the company raises cash to grow, and early investors can finally sell their stakes. For example, when TechStartup Inc. goes public, its stock ticker symbol appears on trading platforms and retail investors can start buying shares. IPOs can be exciting but risky—new public companies are often unproven at scale.