An Initial Public Offering (IPO) is the process by which a private company becomes publicly traded, allowing it to sell shares of its stock to the public for the first time. This transition from private to public status involves issuing new shares and conducting an IPO on a stock exchange. It provides the company with capital for expansion and allows investors to buy and trade shares. The IPO process involves regulatory approvals, underwriting by investment banks, and the establishment of an initial stock price through the market.
