What Is An IPO?

The very first sale of stocks to the public is called an initial public offering (IPO), and occurs on the primary market. Corporations sell stock to the public as one way to raise capital. Before it can issue new stock, a corporation must first file registration statements with the Securities and Exchange Commission (the SEC). A twenty­ day wait is required before it can sell the stocks.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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