Initial Public Offering (IPO)

The process of offering shares for purchase on the stock market for the very first time by an organization is known as its initial public offering (IPO). IPO is one of the major milestones in the development of an organization. This is the time when a company becomes publicly available on the stock exchange for the retail traders to buy their shares.

Launching an IPO is one of the best ways for organizations to raise funds and boost their performance. This is also a notable milestone as its growth had gotten to the point where its work had started to receive attention from public investors. Many companies and startups try to go public as it opens up several opportunities for the company. Companies are considered private before they launch IPOs. IPOs are beneficial for growing businesses and not for smaller companies that wish to remain private. A company must have achieved a valuation of one billion dollars before they consider starting their own IPO.