Initial Public Offering (IPO)

An IPO occurs when a company sells stock to the public for the first time. It’s essentially the debutante ball for a private company announcing that it will now let anyone buy into it. The buzzy IPOs tend to be well- known consumer platforms (B2C, which is business- to- consumer) like Facebook, but all sorts of companies go public that you haven’t heard of (including B2B, where businesses sell to other businesses). It’s also a time when founders make actual cash and not “paper money,” or equity that hasn’t been liquidated. (See also: B2B, B2C)

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