# IPO (Initial Public Offering)

*Markets & Instruments — Finicade finance glossary*

The first time a private company sells shares to the public and lists on an exchange. It raises capital for the company and lets early backers cash out — and sets the stock's very first market price.

**Also known as:** initial public offering, going public

**Related terms:** [Stock (Equity)](https://finicade.com/glossary/stock), [Market Capitalization](https://finicade.com/glossary/market-capitalization)

Source: https://finicade.com/glossary/ipo