Going Public

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Dictionary Says

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).
Investopedia Says

Investopedia explains 'Going Public'

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

Related Definitions

  • Direct Public Offering - DPO

    When a company raises capital by marketing its shares directly to its own customers, employees, suppliers, distributors and friends in the community. DPOs are an alternative to ...
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  • Greenshoe Option

    A provision contained in an underwriting agreement that gives the underwriter the right to sell investors more shares than originally planned by the issuer. This would normally be done ...
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  • Gun Jumping

    1. The illegal practice of soliciting orders to buy a new issue before registration of the initial public offering (IPO) has been approved by the Securities and Exchange Commission ...
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    • Initial Public Offering - IPO

      The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately ...
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    • Lock-Up Agreement

      A legally binding contract between the underwriters and insiders of a company prohibiting these individuals from selling any shares of stock for a specified period of time. Lock-up ...
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    • Prospectus

      A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details about an investment offering for sale to the public. A ...
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    • Red Herring

      A preliminary registration statement that must be filed with the SEC describing a new issue of stock and the prospects of the issuing company.
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    • Underwriting

      1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The ...
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    • Streetable

      A company that has a management team with enough strength and experience to run a public company. It's imperative for Wall Street to have confidence in a company's management - otherwise ...
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    • Pre-IPO Placement

      When a portion of an initial public offering (IPO) is placed with private investors right before the IPO is scheduled to hit the market. Typically, these private investors in a pre-IPO ...
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