IPOs Explained (Finance)

July 17, 2024

An IPO (initial public offering) is when a private company becomes publicly-owned. This means that investors can purchase the company’s stock on the stock market, rather than the company only being in the hands of private owners and investors.

What’s the point? A common purpose of an IPO is that it allows companies with access to raise more money, which in return helps their ability to grow and expand.

It’s a pretty loaded process that I still don’t fully understand, but the section above is a quick one minute summary on what an IPO is.

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