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What is an IPO?

An Initial Public Offering (IPO) is the process through which a private company first sells shares of its stock to the public, thereby transitioning into a publicly-traded entity. This event allows the company to raise capital from public investors, which can be used for expansion, debt repayment, or other corporate purposes. The IPO process involves several key steps including selecting underwriters, determining the offer price, and complying with regulatory requirements like those from the Securities and Exchange Commission (SEC) in the U.S. The article explains that an IPO not only provides liquidity to the company's early investors and founders but also increases its public profile, potentially attracting more business opportunities. However, it also subjects the company to greater scrutiny, regulatory oversight, and the pressures of quarterly earnings reports.

Read the Full MSN Article at:
[ https://www.msn.com/en-ae/money/companies/what-is-an-ipo/ar-BB1qiGL0 ]