What is an initial public offering (IPO)?

What is an initial public offering (IPO)?

September 3, 2023

What is an initial public offering (IPO)?

Answer and ExplanationSolution by a verified expert

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Companies are generally started by a small number of investors at first.

When a privately held corporation decides to expand and raise capital from the public, it can hold an IPO by which they will sell the company's shares to public investors. This process transforms a private company to a public company.

Verified Answer
An initial public offering (IPO) is the process by which a privately held corporation issues its shares to the public and becomes a publicly owned corporation.

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