Initial Public Offering (IPO)

An Initial Public Offering (IPO) is when a private company sells shares to the general public for the first time, becoming a publicly traded company. Before an IPO, a company's stock is only owned by founders, employees, and private investors. After going public, anyone can buy shares on a stock exchange like the NYSE or NASDAQ. IPOs matter because they're how companies raise large amounts of money to grow, and they're often a big moment for early investors who can finally sell their stakes. For example, when TechStartup Inc. goes public, its stock ticker symbol appears on exchanges and regular investors can start trading it.