Simple English definitions for legal terms
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Going public is when a company decides to sell its stock to people who want to invest in it for the first time. This means that the company becomes a public corporation and has to follow certain rules and regulations set by the government.
Definition: Going public is the process of a company selling its stock to the public for the first time. This happens after the company files a registration statement under applicable securities laws. Once the company sells its stock to the public, it becomes a public corporation.
One example of going public is when a startup company decides to sell its stock to the public for the first time. This is often done through an initial public offering (IPO), where the company offers shares of its stock to investors in exchange for capital.
Another example is when a privately held company decides to become a public company in order to raise capital for expansion or other business purposes. By going public, the company can sell its stock to a wider range of investors and potentially raise more money than it could through private funding.
These examples illustrate how going public can be a significant milestone for a company, as it allows the company to access new sources of capital and potentially grow its business more quickly.