IPO (Initial Public Offering): Definition & Example

IPO (Initial Public Offering)

When a private company first sells shares to the public.

An IPO is a company’s debut on the stock market. Newly public stocks are often volatile, thinly understood, and subject to insider "lock-up" periods that can flood the market with shares later. Exciting, but rarely a place for beginners to concentrate money.

For example

A company IPOs at $10, spikes to $21 on hype, then drifts back toward $9 as the excitement fades and early investors sell.

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IPO (Initial Public Offering)

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