Initial Public Offering. The first sale of stock by a company to the public.Companies offering an IPO are sometimes new, young companies, or sometimes companies which have been around for many years but are finally deciding to go public. IPOs are often risky investments, but often have thepotential for significant gains. IPOs are often used as a way for a young company to gain necessary market capital.


Usage Example

An IPO is the first set of shares that are sold once a company decides to become publically traded.