Going Public


DEFINITION of 'Going Public'

The process of selling shares that were formerly privately held to new investors for the first time. Otherwise known as an initial public offering (IPO).

BREAKING DOWN 'Going Public'

When a company "goes public," it is the first time the general public has the ability to buy shares.

  1. Red Herring

    A preliminary prospectus filed by a company with the Securities ...
  2. Pre-IPO Placement

    When a portion of an initial public offering (IPO) is placed ...
  3. Lock-Up Agreement

    A legally binding contract between the underwriters and insiders ...
  4. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  5. Greenshoe Option

    A provision contained in an underwriting agreement that gives ...
  6. Gun Jumping

    1. The illegal practice of soliciting orders to buy a new issue ...
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  1. How can I invest in a mutually owned insurance company?

    Mutually owned insurance companies do not issue stock or other equity securities. This means you cannot become a shareholder, ... Read Full Answer >>
  2. Why does financial accounting have to comply with GAAP?

    Not all financial accounting practices in the United States have to comply with generally accepted accounting principles ... Read Full Answer >>
  3. What advantages do corporations have over privately held companies?

    The chief advantage that most publicly traded corporations enjoy – and the primary reason why private companies decide to ... Read Full Answer >>
  4. What are the different types of IPO issued?

    An initial public offering, or IPO, is the way a firm goes public and sells shares to raise financing. It is one of the investing ... Read Full Answer >>
  5. Are IPOs available to short sell immediately upon trading, or is there a time limit ...

    The quick answer to this question is that an IPO can be shorted upon initial trading, but it is not an easy thing to do at ... Read Full Answer >>
  6. Can mutual funds invest in IPOs?

    Mutual funds can invest in initial public offerings (IPOS). However, most mutual funds have bylaws that prevent them from ... Read Full Answer >>

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