For many companies, going public is a significant milestone. This process, called an Initial Public Offering (IPO), often makes headlines and stirs the excitement in the financial world. But what is an IPO, and what role does it play in the stock market? Our beginner's guide unravels these mysteries in a simple, easy-to-understand manner. Defining Initial Public Offering (IPO) An IPO, or Initial Public Offering, is the process by which a privately held company first sells its shares to the public. This event marks a company's transition from private to public, allowing everyday investors to take part in its future growth (or decline). The Journey to an IPO Going public is not an overnight process. It involves a series of stages that require significant preparation and regulatory compliance. Choosing an Investment Bank: The company selects an investment bank to guide them through the IPO process. This bank plays the role of an underwriter. Due Diligence and Regulatory Filing: ...