Simple English definitions for legal terms
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An IPO is when a company sells its stock to the public for the first time. It's like when you sell something you made to your friends, but instead of friends, it's strangers who want to buy a part of the company. The company has to follow rules and get permission from the government before they can do this. Sometimes, if not enough people want to buy the stock, the company can stop selling it.
An IPO, or initial public offering, is the first time a company sells its stock to the public. It is a way for a company to raise money by selling ownership shares to investors.
These examples illustrate how companies use IPOs to raise money by selling shares of their stock to the public. Investors can buy these shares and become part owners of the company.