An IPO, or Initial Public Offering, is the process by which a private company offers shares of its stock to the public for the first time. This allows the company to raise equity capital from public investors, which can be used to fund growth initiatives, pay off debts, raise the companys public profile, or allow company insiders to diversify their holdings or create liquidity by selling all or a portion of their private shares as part of the IPO. The IPO process is sometimes referred to as "going public".

To hold an IPO, companies must meet requirements by exchanges and the Securities and Exchange Commission (SEC) . Companies hire investment banks to market, gauge demand, set the IPO price and date, and more. The lead underwriter then assembles a group of investment banks and broker dealers (a group known as a syndicate) that is responsible for selling shares of the IPO to institutional and individual investors.

An IPO is a big step for a company as it provides the company with access to raising a lot of money, which gives the company a greater ability to grow and expand. The increased transparency and share listing credibility can also be a factor in helping it obtain better terms when seeking borrowed funds as well. However, investing in an IPO carries risks, and there are arguably more risks with IPOs than buying the shares of established public companies.