An initial public offering is how a private company becomes public

Initial public offering (IPO) is the term for when a company goes public

When a company completes its IPO, it's no longer a privately owned organization. Anyone can invest in the company by buying its shares on the stock market—opening up ownership of the business to the general public.

It's difficult for individual investors to purchase IPO shares

Although the process of going public means the general public can invest in a company, the initial investment period is different. Before individual investors get in on the action, investment bankers sell the shares to larger financial institutions who can afford the asking price and risk associated with an IPO.

An S-1 reveals financial and other details to the public, often for the first time, when filing for an IPO

To file for an IPO, a company must file a registration form called an S-1 or prospectus with the US Securities and Exchange Commission. S-1s detail a company's current business model, competitive landscape, and other financial information.

A list of public companies' filings

To go public, a company has to file a registration statement with the US Securities and Exchange Commission, also known as the SEC. You can find these filings on the SEC’s website to learn more about a company’s share pricing before its IPO date.

Many investment bankers work on IPOs

When a company undertakes an IPO, investment banks often buy many of the organization’s shares directly from the company, in order to sell the shares on the stock market. The bank stands to profit after marking up the shares.

Companies pay multiple fees as part of the IPO process

When a company decides to approach IPO, it typically hires investment bankers—who earn about 7% of the IPO’s gross proceeds—to help set the organization’s target valuation range and schedule an IPO date. But that isn't the only fee associated with the IPO process.

Why companies go public

There are many ways the founders of private companies can make money off an exit. They could sell the company to a larger organization, for instance. But there are unique benefits to having a company listed on the stock market that aren’t often outlined in news alerts about IPOs.

Going public has pros and cons for a company

An organization transfers ownership over to new shareholders—who could be anyone—following its IPO date. However, going public expands a company’s ability to increase funding and grow its business. This guide dives into the advantages and disadvantages of going public, and what those pros and cons can mean for investors.

Learn how to read a prospectus, the juicy document that any company must file with the SEC before going public

A prospectus typically contains information about the company's operations, including details about its management team and their compensation, financial statements, how it intends to use any capital raised by the IPO, and more. While these documents can be dense and lengthy, experts say that some of the most important sections of a prospectus for investors to look at include the risk factors section and the use of proceeds section.

The cryptocurrency equivalent of going public

An initial coin offering (ICO) is cryptocurrency's version of an initial public offering (IPO). Similar to the way a company offers shares on the stock market for the first time, ICOs occur when a cryptocurrency company seeks to raise funding for a new coin, app, or service. If you're entering the field, get the details on how it all works.

Learn how to read a prospectus, the juicy document that any company must file with the SEC before going public.

Book building is widely considered the most efficient way to price securities

During the book-building process, bankers determine an IPO’s price per share, requesting bids from fund managers and other institutional investors for the number of shares they want and how much they’d be willing to pay for them.

IPOs that failed

Plenty of private companies fail once they try to go public. Failing can mean shares sell for less than their initial asking price on its IPO date, or it can look like a company pulling out of the IPO process at the last minute. Some companies with failed IPOs include Pets.com, Etsy, and Robinhood. Learn more about these companies and others here.

Just because a big name company is going public doesn’t guarantee a successful stock

A reporter dove into how highly anticipated IPOs can still be risky, and why retail investors should be wary of investing right away.

Read about the day Palantir went public in 2020

After more than 15 years in business, Palantir held its initial public offering (IPO) via a direct listing—meaning the company didn't rely on underwriters to assess the initial trading price or stock value. Palantir's stock ended the day trading 31% higher than the reference price.

Some companies like to make their IPO day antics unique

An article details some of the wildest bell-ringing day stunts in recent history, from Clifford the Big Red Dog ringing the opening bell to one company's employees roasting marshmallows in a campfire on Wall Street as it went public.

Robinhood's mission of democratizing finance included its IPO

In 2021, investing app Robinhood went public—and decided to go about its IPO process differently. Unlike other companies, it opened up its IPO for the general public to purchase right away. A podcast episode explains what made Robinhood's IPO so unique prior to its launch date.

SPACs, explained

Special purpose acquisition companies make it easy for mature unicorns (companies valued at over $1B) to receive growth capital by going public. This process effectively skips the work of a traditional initial public offering, and its time-intensive investor negotiations. Typically, a well-known investor with expertise in a certain industry sponsors a SPAC with the intent to acquire a startup. Learn how it works and the risks involved here.

Ride along on one coffee company’s journey through the stock market

From going public with an initial public offering, to struggling with how negative news coverage impacts a stock’s value, this video lets you put yourself in the shoes of a newly public company. This makes learning about the inner workings of the stock market much easier.

SpaceX's S-1 or 'prospectus' revealed many previously unknown details about the company, including its unprofitability despite doing $18.7B in revenue in 2025, exactly how many voting shares Elon Musk will have in the company (roughly 85%), and more.

Google had a quirky, auction-based IPO

In its sixth year, Google's shareholders reached a size where regulators would require the company to publicly report its financials. This prompted the company to go public through an unconventional style: the Dutch auction. The company auctioned its shares starting from a high price and dropping to a lower level.

Seed funding is often the first round of capital that a startup raises

Early-stage startups often try to secure seed funding from investors in order to take their idea from concept to reality.

A guide to emotionally preparing to found a company

Founding a company comes with more than just logistical challenges—it's a daunting emotional task, too. In this article, a psychologist breaks down how first-time founders can prepare for the mental pressure of starting a company.

Venture capital is a form of funding provided to early-stage companies with high growth potential, typically in exchange for an equity (or ownership) stake

The world’s first publicly traded company was the United East India Co.

In an effort to best Spain and gain access to valuable trade in Asia, the Dutch Republic launched the VOC, or the United East India Co. The company held an initial public offering in 1602, allowing “subscribers” to choose how much they wanted to invest in the new venture. It was open to all residents of the republic, making this the first opportunity for retail investors in the world.

The first private equity fund was launched in 1960

At the time, the industry—and the public's understanding of it—was rather limited, and few private equity firms existed until the 1980s. The first leveraged buyout is thought to have taken place in 1955.

Investors rely on the S&P 500 as a benchmark for the state of the economy

Since the index represents a broad range of diverse industries, it's become a proxy for the market itself and a common benchmark for investors to compare returns and performance patterns against. Generally speaking, when someone says a stock is under- or out-performing the market, that actually means under- or out-performing the S&P 500. The S&P 500 is exchange-agnostic, and includes companies listed on both the NYSE and Nasdaq.

Elon Musk joined Tesla in 2004, investing $30M and becoming chair

The company went public in 2010, raising $226 million in its IPO just two years after beginning production on its first car. Tesla's first Supercharger stations were launched in 2012 with six locations in California.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

While the first exchange-traded fund (a 'basket' of different assets that can be bought and sold on a stock exchange) in the US only launched in 1993, the global ETF market has grown to more than $10T in the short time since.

Dozens of S&P 500 stocks, including Coca-Cola and Walmart—known as the dividend aristocrats—have increased dividends every year for 25 years

Warren Buffett's former professor Benjamin Graham is known as the 'father of value investing,' a strategy in which investors seek to buy stocks trading below their intrinsic worth.

In 2025, four executives from large tech companies were given positions in the US Army Reserves—including Palantir Chief Technology Officer Shyam Sankar, which reinforced Palantir's ties with the US military and its role as a leading defense partner.

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Art theft is the third-largest source of criminal revenues worldwide, thanks in part to the subjective nature of valuing a work of art.

Meet the 56 signers of the Declaration of Independence—most of whom didn't put pen to paper until August 2, 1776—and see their original signatures.

'Silent' fireworks have gained more interest in recent years as a quieter celebratory option.

Doctors differentiate between a phobia and fear by asking patients whether their fear interferes with their day-to-day activities.

Take a 3D tour of the Hajj, Islam's annual pilgrimage to Mecca, undertaken by over 1.5 million Muslims.

Watch what the Ebola virus does inside our cells and organs in order to spread and survive.

Coral polyps reproduce via broadcast spawning, where entire reefs simultaneously release reproductive cells for about one hour, once a year.

About 2,000 US babies are born annually without some portion of their limbs, potentially leading to a lifetime of pricey prosthetics.

Budweiser stores yeast derived from the original 1800s strain in a secret bunker, which only the Head of Yeast Management can access—not even the CEO

The 1987 Nintendo video game 'Stadium Events' isn't known for being particularly fun, but its scarcity has made it a highly sought-after item that has sold for up to $35K at auction.

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The distributor behind 'Rocky Horror' pulled the film from its scheduled national release, believing it would be a failure, though it eventually amassed a dedicated fanbase through midnight showings, a trend that continues over 50 years later.

Between 10 million and 50 million people in the US develop rashes from poison ivy, poison sumac, and poison oak each year.