Initial Public Offering

Definitions

1. The process by which a private company first sells shares to public-market investors and becomes publicly traded. An IPO changes access to capital, disclosure obligations, governance, and employee liquidity all at once.

   In plain English: The first time a private company sells shares to the public stock market.

   Example: "The board delayed the initial public offering until revenue predictability improved."

Related Terms

• Exit
• Direct Listing
• Exit Event
• Investor Relations
• IPO Lockup
• Market Cap
• Market Maker
• Quick Ratio