IPO is the abbreviation of Initial Public Offerings in English, and the Chinese definition is initial public offering, which refers to an enterprise or company (joint stock limited company) selling its shares to the public for the first time (initial public offering refers to the way in which a joint stock company makes its first public offering).

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 by the corresponding CSRC. Generally speaking, once the initial public listing is completed, the company can apply for listing on the stock exchange or quotation system. A limited liability company should be changed into a joint stock limited company before applying for IPO.

Extended information:

Corresponding to the primary market, most public shares are underwritten by the investment banking group and enter the market. Banks buy their accounts from issuers at a certain discount price and then sell them at the agreed price. The preparation cost for public offering is high, and private placement can partially avoid such costs to some extent.

this phenomenon was initiated in the United States in the late 199s, when the United States was experiencing the dotcom stock bubble. The founder will set up a company with independent capital and 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 early days of their listing.

Many founders became millionaires overnight. Thanks to stock options, employees also earned considerable income. In the United States, most stocks raised through initial public offerings will be traded in the Nasdaq market. Companies in many Asian countries will raise funds through similar methods to develop their business.

Reference: Initial Public Offering (IPO)- Baidu Encyclopedia