Finance
What is An IPO?
An IPO (Initial Public Offering) is when a private company sells shares to the public for the first time, becoming a publicly traded company. It raises money for the business and lets everyday investors buy a stake.
See it, don’t just read it.
Watch a 2-minute lesson with voice + animation that explains an ipo.
Key things to understand
- 1IPO stands for Initial Public Offering.
- 2A private company sells shares to the public for the first time.
- 3It raises capital and lets the public invest.
- 4After it, the company's stock trades on an exchange.
Frequently asked questions
- What is an IPO?
- When a private company first sells its shares to the public and becomes publicly traded.
- Why do companies go public?
- To raise large amounts of money, let early investors cash out, and gain public profile.
- Is investing in IPOs risky?
- It can be — new public companies are often volatile, and early hype doesn't guarantee long-term success.