Market & Structure

IPO

Initial Public Offering

Definition

When a private company first sells shares to the public

Explanation

An IPO is when a private company lists its shares on a stock exchange, allowing anyone to buy and sell them. Companies use IPOs to raise large amounts of capital. Investors get the opportunity to invest early in potentially high-growth companies. You can participate through IPO subscriptions.

Example

Airbnb IPO: December 2020, opened at $146 per share