Initial public offering (IPO) refers to the process that an enterprise issues shares to investors for the first time through a stock exchange in order to raise funds for enterprise development. Refers to the initial public offering of joint-stock companies to the public. The IPO pricing process is divided into two parts. Firstly, the theoretical value of listed companies is estimated through a reasonable valuation model. The second is to reflect the relationship between supply and demand in the market by choosing the appropriate distribution method, and finally determine the price.

Corresponding to the primary market, most public shares are underwritten by investment banking groups and enter the market. The bank buys its own account from the issuer at a certain discount price and then sells it at the agreed price. The preparation cost of public offering is high, and private placement can partially avoid such costs to some extent.

This phenomenon began in the United States in the late 1990s, when the United States was experiencing a bubble in the Internet stock market. The founder will set up a company with independent capital and hope to raise funds through initial public offering (IPO) during the bull market. Because investors believe that these companies have a chance to become Microsoft's second, their share prices usually rise in the initial stage of listing.

Many founders became millionaires overnight. Due to stock options, employees have also earned considerable income. In the United States, most shares raised through initial public offerings will be traded on the Nasdaq market.