IPO (Initial Public Offering)
In the life of a company, just as it occurs in a person’s life, there are significant instances that mark a deep shift from the previous life. One amongst them is the IPO, which is an acronym that stands for Initial Public Offerings. An IPO is a procedure through which a private company offers its shares among the public (the so-called creation of the free float) for the first time on a regulated market. Upon making this shift, a company transitions from being privately held by a select group of owners and investors to being publicly owned. A company is regarded as private when its shares are held by a relatively limited number of shareholders. These shareholders often include initial investors such as the company’s founders, their family and friends,…