Learn / Glossary / IPO (initial public offering)

Glossary

What is IPO (initial public offering)?

An IPO is the first day a private company sells its shares to the public.

The simple explanation

Before an IPO, a company is owned by founders and private investors. In an IPO it lists on an exchange so anyone can buy its stock. Prices can be very volatile in the first days.

An example

A popular app company goes public and its shares begin trading on the Nasdaq.

Why it matters

IPOs are how many well known companies first become stocks you can follow.

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Related terms

Educational information, not financial advice.