In essence, an IPO means that a company's ownership is transitioning from private ownership to public ownership—i.e., "going public." An investment in an IPO has the potential to deliver attractive returns.
Why do companies do IPOs?
Our opinions are always our own. An initial public offering (IPO) marks a private company's debut on a stock exchange. Companies do IPOs for the cash they bring and the prestige of going public. IPOs are often high risk, as the new stock's price can initially soar and then drop dramatically.
Who can invest in an IPO?
Technically anyone can invest in an IPO, but often demand outnumbers supply. There's no guarantee that you'll be able to get a slice of the pie, especially right out of the gate. IPOs may be limited to a firm's larger clients. You can buy shares of an IPO through a brokerage or online brokerage.
When was the first IPO?
In the United States, the first IPO was the public offering of Bank of North America around 1783. This section has multiple issues. Please help improve it or discuss these issues on the talk page.
