What Is an IPO and How Does It Work?

An IPO stands for Initial Public Offering. It is the moment a privately held company goes public and sells its shares on a stock exchange for the first time, opening them up to any investor.What does IPO stand for in business? Imagine your neighbor has built a thriving business. Until now, only close friends and private investors could buy a stake in it. Now the company is going public, and its shares trade freely on the secondary market, open to public investors.What is an IPO at its core? It i