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An '''IPO''', which is short for '''initial public offering''', is the sale of shares of [[stock]] in a company to the public for the first time. This subjects a private company to requirements of public disclosure and other regulations.
An '''initial public offering''' (generally referred to by its initials '''IPO'''), is the sale of shares of [[stock]] in a company to the public for the first time. This subjects a private company to requirements of public disclosure and other regulations.
After expiration of a time period, usually called the "lock-out period," insiders in the company are then able to sell their own shares. For media-promoted companies like [[Facebook]], insiders usually reap an enormous profit for themselves months or years after the IPO.
After expiration of a time period, usually called the "lock-out period," insiders in the company are then able to sell their own shares. For media-promoted companies like [[Facebook]], insiders usually reap an enormous profit for themselves months or years after the IPO.
Often the stock price will skyrocket on the day of the IPO (thus making initial investors wealthy).
[[Category:Finance]]
[[Category:Finance]]