
An Initial Public Offering (IPO) is when a private company first sells its shares to the public on a stock exchange. IPOs allow companies to raise capital from public investors and give early investors and employees a way to cash out. Famous IPOs include Facebook (2012), Uber (2019), and Airbnb (2020). IPO stocks can be volatile in their first few months of trading.
Related Terms
A stock (also called a share or equity) is a fractional ownership stake in a company. When you buy a...
The stock market is a collection of exchanges where buyers and sellers trade shares of publicly list...
A bull market is a period in which stock prices are rising or expected to rise — generally defined a...
A bear market is a period of declining stock prices, typically defined as a drop of 20% or more from...
Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.