When a company is starting out, it is privately owned 🤝
Only a small group of people, often investing companies and professional investors, have ownership 🔐
When a company gets big enough, it can submit documents to the SEC 📃
These documents report revenue, operations and everything to verify the business ✅
These documents are the “Initial Public Offering,” and also state the stock price 🏷️
Once approved, the company gets to sell its stock to the public 📣
So, investors like YOU can invest through the stock market 🤑
Going public can be a big event for a company, as it can help it to grow, raise awareness and become more successful ✨
However, it's important to remember that investing in a recent IPO is risky, as the stock price of a company can go up or down after it goes public 🤔
An IPO can be a good way to invest in a company early on though
But, before investing in an IPO, do your research to understand the risks involved 📖
Now you know the basics of IPOs! 💸
Keep an eye out for emerging companies in the news 🚀