What is an Initial Public Offering (IPO)? Understanding the Core Concept of IPO
An initial public offering (IPO) is the process by which a private company officially enters the securities market and first offers its shares to the general public. Through this process, the company achieves its key goal of raising capital, and investors gain new opportunities to participate in high-growth potential companies.
There are various reasons why a company may choose to go public. When large-scale funding is needed to expand research and development, broaden business areas, repay existing debt, or pursue mergers and acquisitions, such procedures are necessary.