Definition
The first time a private company sells shares to the public and lists on a stock exchange.
The story
Before an IPO, a company is owned by founders, employees and private investors. On listing day, anyone with a brokerage account can buy its shares. The opening price can swing far from the offer price as public demand sets the value for the first time.
Why markets watch it
A busy IPO market is often read as a sign of strong investor confidence.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms