IPO startup
What is IPO?
An IPO is an initial public offering. In an IPO, a privately owned company lists its shares on a stock exchange, making them available for purchase by the general public.
Many people think of IPOs as big money-making opportunities—high-profile companies grab headlines with huge share price gains when they go public. But while they’re undeniably trendy, you need to understand that IPOs are very risky investments, delivering inconsistent returns over the longer term.
Financial meaning
An IPO raises needed capital to help a company grow. It's a payday of sorts to founders and investors who stand to profit. The price of the stock may even go higher between the IPO and the secondary market offering.
There are stories about entrepreneurs becoming millionaires or even billionaires after their companies went public. This isn't the case. The companies best prepared to go this route are ones that already have a solid track record and are in an industry that's already the focus of much hype