Share of Stocks
Initial public offering (IPO) refers to the first time a company sells its shares of stock to the public. An IPO occurs when a privately owned company issues shares of stocks to be sold to the general public. This means that the company is no longer privately owned, but is owned by many investors, most of whom are not involved with the day-to-day operations of the company. These investors simply own some of the company's stock, which they purchased on the open market or during IPO.