going public

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).

Notes:

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

See also: Direct Public Offering, Greenshoe Option, Gun Jumping, IPO, Lock-up Agreement, Prospectus, Red Herring, Underwriter

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Going public

When a private company first offers shares to the public market and investors. See: IPO.

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going public

The process by which a privately held company sells a portion of its ownership to the general public through a stock offering. Owners generally take their firms public because they need additional large sums of equity funding that they are unable or unwilling to contribute themselves.