An Initial Public Offering (IPO) is the first time that a private company offers its shares to public markets on a stock exchange. It allows the company to raise capital from outside investors while giving the public a chance to own a stake in the business.
To complete an IPO, a company files a prospectus with the SEC that explains the securities being offered and its financial condition. Investment bankers act as underwriters, helping set the price, number of shares, and then selling them to the public, including through brokers like Public. Finally, the company applies to list its stock on an exchange like the NYSE or Nasdaq.