Understanding IPOs: A Beginner's Guide

Introduction

An Initial Public Offering (IPO) is the process by which a privately-held company goes public, allowing everyday investors to purchase shares and become part-owners. For many companies, an IPO marks a significant milestone, offering opportunities for growth and public visibility. For investors, it can be a chance to get in on the "ground floor" of a potentially lucrative venture. However, IPOs can also be complex and risky. This guide aims to simplify the topic for beginners.