IPO — Initial Public Offering
Definition: The first time a private company sells shares to the public on a stock exchange, raising capital and giving early investors a way to exit.
Example
When Airbnb IPO'd in December 2020, it raised $3.5B and gave early employees and VCs their first chance to sell shares.
When you'll hear it
IPO shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to initial public offering — and they expect the room to already know what that means.
FAQs
Why do companies IPO?
Three reasons: raise capital, give early investors liquidity, and use public stock as currency for acquisitions and hiring.
What does IPO stand for?
IPO stands for Initial Public Offering.
What does IPO mean in business and finance?
The first time a private company sells shares to the public on a stock exchange, raising capital and giving early investors a way to exit.
Where will I hear IPO used at work?
IPO comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for initial public offering, so people assume you already know the term.