Initial Public Offering (IPO)

An Initial Public Offering (IPO) marks the first time a company offers its shares to the public for sale. Before an IPO, a company is classified as a private entity, typically owned by a small group of investors, including founders, friends, family, and business backers such as venture capitalists or angel investors. An IPO allows the general public to purchase shares and own a portion of the company for the first time. An IPO, commonly referred to as "going public," involves a company offering its shares to the general public for the first time. This process is usually facilitated by an investment bank, which acts as the underwriter. The underwriter plays a critical role in the IPO by assessing the company’s financials, determining its market value, setting the initial share price, and managing the regulatory and legal requirements. Additionally, the investment bank works to generate interest among potential investors and ensures that the IPO is successfully marketed and executed.