PrivateTechSharesHome › Glossary › Initial public offering (IPO)
🌍 US & Europe · Exits & dealsInitial public offering (IPO)
Also called: IPO, going public
In one line
When a private company first sells shares to the public and lists on a stock exchange, creating a liquid market for its stock.
In plain English
An IPO turns private shares into publicly tradable ones. After a lock-up, employees can finally sell on the open market. It's the classic, though increasingly delayed, liquidity event.
If you were explaining it to a 5-year-old
The toy shop that was always closed finally opens to everyone — now toys can be bought and sold freely.
Why it matters when you sell
An IPO is the traditional path to selling, but lock-ups and long private periods are exactly why employees explore secondaries first.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
Primary references for this term: US SEC / Investor.gov. Our definitions are written in plain English and kept evergreen — see the glossary methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.