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Kiplinger
Kiplinger
Business
Tom Taulli

What Is an Initial Public Offering (IPO)?

A smartphone on a table with a screen reading "IPO," next to a notebook and coffee cup.

The market for initial public offerings (IPO) is starting to heat up after a period of calm. What is an IPO? And should you seek opportunities to invest in them?

An initial public offering enables a private company to "go public," or start trading in public markets by issuing its own shares on a stock exchange for the first time. Any investor can buy shares, and the company can raise capital to grow.

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