The basics
IPO (initial public offering)
An IPO (initial public offering) is the first sale of a company's shares to the general public.
An IPO (initial public offering) is the first sale of a company's shares to the general public.
With an IPO, a private company becomes listed: anyone can buy its shares. The first days are often very volatile, as the market searches for the "right" price. It is exciting but risky for a trader.
A tech company goes public at $20 a share; on day one, the price swings wildly.
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