Go Public - Initial Public Offering

Go Public - Initial Public Offering An initial public offering, or IPO, is the first sale of stock by a company to the public. A company can raise money by issuing either debt or equity. If the company has never issued equity to the public, it's known as an IPO. Companies fall into two broad categories: private and public. Privately held companies have fewer shareholders, usually owner, their family and friends and sometimes venture capitalist and angel investors. The public is not able to invest in private companies. Private companies have benefits of not having to disclose much information about the company. It usually isn't possible to buy shares in a private company. Public companies offered some part of their business to the public and trade on stock exchange so initial public offering is often called "going public". On the other side public companies can have thousands of shareholders and are subjected to rules and regulations. Public companie...