Initial Public Offering. The first sale of stock by a company to the public. Companies offering an IPO are sometimes new, young companies, or sometimes companies which have been around for many years but are finally deciding to go public. IPOs are often risky investments, but often have the potential for significant gains. IPOs are often used as a way for a young company to gain necessary market capital.

Use IPO in a sentence

Although they had kept their doors tightly sealed for many, many years, they had finally decided to open up their market with an IPO.

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When my startup company grew large we had a lot of people who wanted to invest in it, so I decided to cash out by selling shares to the public in an IPO.

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The investors were all anxious to hear what the business executive had to say about his company's upcoming IPO launch, hoping they would soon be wealthy men.

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