What is the meaning of IPO (Initial Public Offering)?

IPO (Initial Public Offering) is a company's first sale of stock to the public. Securities offered in an IPO are often, but not always, those of young, small companies seeking outside equity capital and a public market for their stock. Investors purchasing stock in IPOs generally must be prepared to accept very large risks for the possibility of large gains. IPOs by investment companies (closed-end funds) usually contain underwriting fees which represent a cost to buyers.

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APABarry Goldsmith. (2010). IPO (Initial Public Offering). Retrieved September 21, 2026, from http://smartdefine.org/ipo_(initial_public_offering)/definitions/1156579
ChicagoBarry Goldsmith. 2010. "IPO (Initial Public Offering)" http://smartdefine.org/ipo_(initial_public_offering)/definitions/1156579 (accessed September 21, 2026).
HarvardBarry Goldsmith 2010, IPO (Initial Public Offering), Smart Define, viewed 21 September, 2026, <http://smartdefine.org/ipo_(initial_public_offering)/definitions/1156579>.
MLABarry Goldsmith. "IPO (Initial Public Offering)" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/ipo_(initial_public_offering)/definitions/1156579>