IPO (Initial Public Offering)

The first time a company offers common shares of stock to the public / investors. The company will usually issue only primary shares, but may also sell secondary shares. The first sale of stock by a private company to the public. IPOs are often smaller, younger companies seeking capital to expand their business.

If a brand new company or a company already in existence, but with no shares listed on the stock exchange, decides to invite the public to buy shares, it is called an Initial Public Offering (IPO).

It is the first time that it is approaching the public for money. That is why the company is also referred to as 'going public'.

Also referred to as a "Public Offering."