What is an IPO?

An IPO, or initial public offering, is when a private company first sells shares to the public.

It lets the company raise money and lets early owners sell. Prices can swing widely in the first days of trading, and a popular IPO is not guaranteed to do well. Early investors are often limited in when they can sell, so more shares may reach the market months later.

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General information only, not financial advice. Investing can lose you money.