Initial Public Offering (IPO)

When shares of a private company are initially made available to the public as part of a new stock issuance, it's known as an initial public offering (IPO). A corporation can raise equity funding from the general public through an IPO. Since current private investors often receive a share premium during the transition from a private to a public business, this might be a crucial period for private investors to completely realize gains from their investment. Additionally, it enables public investors to take part in the sale.