Photos: Winter Weather; Storm brings biggest waves on earth to the Northwest coast The Weather Network; Week in Weather: January 19; Temperatures in Orlando area drop to coldest since 2010 Tribune News Service; South awaits thaw from snow, icy roads and numbing cold Associated Press
Selling shares of stock to investors is a common way that companies attract capital that they can use to fund new projects and growth. An initial public offering, or IPO, is a company's first sale of stock to the public. When a company files for an IPO, it plans on selling stock to the public, which means the company goes from being privately owned to being publicly owned.
Companies, Going Public. A company that goes public typically refers to when a company undertakes its initial public offering, or IPO, by selling shares of stock to the public usually to raise additional capital. After its IPO, the company will be subject to public reporting requirements and its shares often become listed on a stock exchange. For more information on public companies, click here. The SEC has also prepared a guide for companiesâSmall Business & the SECâthat provides a basic understanding about how companies can become public and what securities laws apply.