IPO is an initial public offering of shares.

Initial public offering refers to the first time that a private enterprise sells shares to the public. Usually, the shares of listed companies are sold through brokers or market makers according to the terms agreed in the prospectus or registration statement issued to the corresponding stock exchanges. Generally speaking, once the initial public listing is completed, the company can apply for listing on the stock exchange or quotation system.

Another feasible method of listing on the stock exchange or quotation system is to stipulate in the prospectus or registration statement that private companies are allowed to sell their shares to the public. These stocks are considered to be "freely traded", which makes enterprises meet the requirements of listing on the stock exchange or quotation system. Most stock exchanges or quotation systems have rigid regulations on the number of shareholders of listed companies, which stipulate the minimum number of freely traded shares.

In layman's terms, it refers to the "IPO inquiry system". In other words, the newly issued companies should ask some large institutions about the issue price, first determine an upper limit and a lower limit, and then make an inquiry to determine the final issue price. This method is relatively open and can fully reflect the market's recognition of the company's stock.