As an educational website, we at iStockly understand the importance of keeping our readers informed about the latest business trends and practices. In the world of finance, one term that has been making headlines for quite some time now is IPO or Initial Public Offering. In this article, we will explore what an IPO is and why it matters for businesses and investors alike.

An IPO is the process by which a private company goes public by offering its shares to the general public for the first time. This means that the company is now listed on a stock exchange, allowing investors to buy and sell its shares. It is a major milestone for any company as it marks a shift from being privately owned to being publicly traded.

The decision to go public through an IPO is not one that is taken lightly by companies. It involves a lot of planning, preparation, and legal requirements. Companies need to meet certain financial and regulatory standards before they can go public. This is to ensure that the company is financially stable and transparent for potential investors.

So why do companies decide to go public through an IPO? The main reason is to raise capital. Going public allows companies to raise a significant amount of money by selling shares to investors. This capital can then be used to fund the company's growth and expansion plans. Going public also increases a company's visibility and credibility, which can attract more business opportunities and partnerships.

For investors, IPOs offer a chance to invest in a company at its early stages and potentially reap high returns in