IPO is short for initial public offering.

It describes the procedure of first issuing fresh shares of stock to the general public in the case of a private firm. A corporation can raise equity funding from the general public through an IPO.

 

Since there is often a share premium for present private investors, the transition from a private to a public firm can be a crucial period for private investors to completely realize rewards from their investment. Additionally, it enables public investors to take part in the sale.