brand glossary: IPO

An IPO, or initial public offering, which is also often referred to as “going public,” is the first sale of a company’s shares to the public. IPOs are often sought by small or young companies, with a great deal of potential, who need the funds or capital to expand or grow; it can be sought by established companies seeking a new source of capital; or by businesses divested from an existing public company. This is done by listing shares on a stock exchange (also known as a company being listed) and the shares publicly traded.

Also know as: initial public offering, going public