Real-Time Celebrity Stock Market Investments

What is an Initial Public Offering (IPO)?

An initial public offering (IPO) is the first sale of stock by a private company to the public. It allows the company to raise capital by selling shares of stock to the public.

Companies that issue an IPO can be small, privately-held businesses looking to expand or large, established firms looking to become publicly traded.

The process of going public can be complex and involves a number of steps, including filing regulatory documents with the Securities and Exchange Commission (SEC) and working with investment banks to underwrite the offering. Once the IPO is completed, the company's shares are listed on a stock exchange, and investors can buy and sell the company's stock just like any other publicly traded company.