How an IPO works
4 cards · about a minute · 29 October 2026
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An IPO is when a company first sells shares to the public.
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Anyone can then buy and sell its shares on the stock exchange.
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Early investors and employees can finally sell some shares.
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A regulator, like the SEC in the US, checks the company's documents before it lists.
Test yourself
An IPO is when a company…
- First sells shares to the public
- Raises its first angel money
- Gets bought by another company
Show the answer
First sells shares to the public. After an IPO, anyone can buy and sell its shares on a stock exchange.
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