An initial public offering (IPO) is the process in which a private corporation offers shares in the company for public purchase, allowing capital to be raised from investors.
An IPO is a big step for a company as it provides them with access to increased funds, offering opportunities for further expansion. Good use of these additional funds will result in further growth and an increase in the share price, making a well-selected IPO a potentially very profitable investment. The best performing offerings gain over 500% in value within one year.