What is an IPO?

An initial public offering (IPO) is the initial stage of a company going public and offering its shares for sale on a stock exchange. IPOs are used by companies to raise money from investors to help them grow in exchange for equity.

There is more scrutiny for publicly listed companies from regulators, so to launch an IPO a company must meet its local country’s regulations before it can legally launch one. IPOs can help to boost the profile of a company, especially if the IPO is successful and creates a buzz.