What does IPO mean?

IPO stands for Initial Public Offering. It is the process through which a private company becomes a publicly traded company by offering its shares to the general public for the first time. This allows the company to raise capital by selling shares to investors, and also provides liquidity to its existing shareholders. The IPO process involves a number of steps, including working with underwriters to determine the offering price, preparing a prospectus for potential investors, and meeting regulatory requirements set by the Securities and Exchange Commission (SEC). Once the IPO is completed, the company's shares are listed on a stock exchange, where they can be bought and sold by investors. This process can be a significant milestone for a company, as it can provide access to additional capital for growth and expansion, as well as increased visibility and credibility in the market.