Initial Public Offering (IPO)

An intial public offering or IPO is the first offering of shares to the general public made by a company after it becomes a public company.

During an IPO, shares are typically distributed to investors through a transfer agent after being issued by an underwriter on behalf of the newly public company.

A company may choose to sell only part of their stock during an IPO, while withholding shares to sell in future public offerings.

In some cases, the shares sold as part of an IPO may issue preferred shares or may include subscription rights.

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