What is IPO (initial public offering)

An initial public stock offering (IPO) referred to simply as an "offering" or "flotation”. Small and young companies usually issues common stock or shares for their capital to expand. This is also can be done by big privately-owned companies to trade publicly. Initial Public Offering is the first sale stock in public by small and privately-owned companies.
A company can earn money by issuing either equity or debt. If the company does not equity to public, it will be called IPO. If the company would go to the public, it has to hire and investment bank, a financial intermediary that could give assistance of an underwriting firm that helps to determine the type of security to issue, best offering price and time to bring it to market.
An IPO can be risky investment. For individual investor, it is tough to predict what the stocks or shares will do on its final day of trading and in the near future since there is often little historical date with which to analyze the company.
Most IPOs are of companies going through a transitory growth period, and they are subject to additional uncertainty regarding their future value.

QUOTE OF THE DAY:
An initial public stock offering (IPO) referred to simply as an "offering" or "flotation”.

CONCLUSION:
The public can get their shares in Initial Public Offer by having an account, which is traded every now and then, with one of many investment banks.

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