Hey everyone, I keep seeing the term IPO in stock market news. I know it’s about companies going public, but what does it really mean? Why do businesses launch IPOs, and is investing in them safe? Would love a simple explanation.
An IPO (Initial Public Offering) is when a private company offers its shares to the public for the first time. It allows the company to raise capital from investors and become publicly traded on a stock exchange. IPOs often mark significant growth and increase transparency, but involve regulatory scrutiny.
An IPO, or Initial Public Offering, is the process by which a private company sells shares of its stock to the public for the first time, becoming a publicly-traded company listed on a stock exchange.