What is an initial public offering (IPO) ?
An initial public offering (IPO)
The process of giving shares of a private company to the public in a new stock offering is called an initial public offering (IPO). By selling public shares, a company can get money from people who want to invest in it. As a company goes from being private to public, it may be important for private investors to get share prices. This is because private investors usually get more money from the sale of their shares. Meanwhile, it also allows public investors to participate in the offering.
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