What is an IPO?
An “IPO” is the initial public offering by a company of its securities, most often its common stock. In the United States, these offerings are generally registered under the Securities Act of 1933, as amended (the
“Securities Act”), and the shares are often but not always listed on a national securities exchange such as the New York Stock Exchange (“NYSE”), the NYSE
MKT or one of the NASDAQ markets (“NASDAQ” and, collectively, the “exchanges”). The process of “going public” is complex and expensive. Upon the completion of an IPO, a company becomes a “public company,” subject to all of the regulations applicable to public companies, including those of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”).