What is the meaning of initial public offering (ipo)?

initial public offering (ipo) is an Initial Public Offering (IPO being the Stock Exchange and corporate acronym) is the first sale of privately owned equity (stock or shares) in a company via the issue of shares to the public and other investing institutions. In other words an IPO is the first sale of stock by a private company to the public. IPOs typically involve small, young companies raising capital to finance growth. For investors IPO's can risky as it is difficult to predict the value of the stock (shares) when they open for trading. An IPO is effectively' going public' or' taking a company public'.

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APABarry Goldsmith. (2010). initial public offering (ipo). Retrieved September 21, 2026, from http://smartdefine.org/initial_public_offering_(ipo)/definitions/1156090
ChicagoBarry Goldsmith. 2010. "initial public offering (ipo)" http://smartdefine.org/initial_public_offering_(ipo)/definitions/1156090 (accessed September 21, 2026).
HarvardBarry Goldsmith 2010, initial public offering (ipo), Smart Define, viewed 21 September, 2026, <http://smartdefine.org/initial_public_offering_(ipo)/definitions/1156090>.
MLABarry Goldsmith. "initial public offering (ipo)" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/initial_public_offering_(ipo)/definitions/1156090>