What is an initial public offering (IPO)?

An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance for the first time. An IPO allows a company to raise equity capital from public investors.

What is an IPO / stock launch?

An initial public offering ( IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges.

What is an IPO & how can I invest in one?

What Is an IPO, and How Can I Invest In One? An IPO, or initial public offering, marks the debut of a company’s stock on the public market. Learn more about how an IPO works, the process of going public, and how to invest in an IPO.

Why do companies do IPOs?

Our opinions are always our own. An initial public offering (IPO) marks a private company's debut on a stock exchange. Companies do IPOs for the cash they bring and the prestige of going public. IPOs are often high risk, as the new stock's price can initially soar and then drop dramatically.