IPO (Initial Public Offering)
An Initial Public Offering (IPO) is the process through which a private company offers its shares to the public for the first time, allowing investors to buy ownership in the company. This transition from a private to a publicly traded entity helps businesses raise capital for expansion, debt repayment, or other financial needs. IPOs are typically conducted through book-building or fixed-price mechanisms, with regulatory approvals and disclosures ensuring transparency. Investors participate in IPOs to gain early access to potential high-growth companies, though market volatility and price fluctuations can impact returns. A successful IPO enhances a company's credibility and provides opportunities for further fundraising through public markets.