Initial public offering. When a private company sells shares of stock to the public for the first time, which allows anyone to buy ownership in the company. This is a major milestone for a company and allows it to raise large amounts of money from investors. After an IPO, the company's stock trades on a public exchange like the New York Stock Exchange.
A popular restaurant chain decides to go public through an IPO, allowing regular investors to buy shares at $20 per share. Before the IPO, only the founders and early investors could own a piece of the company.
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