What is an IPO and how does it work?
An Initial Public Offering (IPO) is the process by which a company raises capital by offering shares of its stock to the public for the first time. In an IPO, the company works with investment banks to determine the offering price and the number of shares to be sold. Once the price is set, the shares are offered to the public through a stock exchange or other means. The proceeds of the IPO go to the company and are used to fund its growth and operations.