What is IPO?
Initial Public Offering — when a private company first sells shares to the public.
An IPO is the moment a private company 'goes public' and lists its shares on a stock exchange, letting anyone buy in. It's a major way for early investors and founders to finally cash out some equity.
IPOs raise large amounts of capital but also bring intense regulation, scrutiny, and pressure to hit quarterly numbers forever.
For venture capital investors, an IPO (or an acquisition) is the 'exit' their entire business model depends on.
Related terms
Definitions from the Business Dog Glossary — educational, occasionally satirical, never financial advice.