IPO (Initial Public Offering)

Selling shares to the public for the first time and becoming a listed company.

Example

Listing on a public exchange after years of audited growth.

Important

An IPO is a financing event, not a finish line. It brings continuous public reporting, quarterly scrutiny and a whole new set of obligations.

Related terms

  • Investment bank — A firm that advises on and executes large financial transactions — mergers, acquisitions, IPOs and large debt or equity raises.
  • M&A (Mergers & Acquisitions) — One company buying or combining with another.
  • Governance — The rules and structures by which decisions get made and the company is held accountable.

Lessons that explain it

  • What investment banks actually do — Advanced, and mostly not relevant to you yet. What they are, and the one situation where a first-time founder might meet one. (10 min)
  • What an IPO actually is — Advanced and far away. A financing event that turns your company into a public one, with everything that entails. (10 min)

All 176 terms in the Founder glossary