IPO
An IPO (Initial Public Offering) is when a private company first sells shares to the public — the moment a startup becomes a stock you can buy. Day-one hype often sends the price soaring, but early investors and insiders finally being able to sell can drag it right back down. IPOs are exciting and, on average, treacherous.
Example: A company IPOs at $20, pops to $35 on opening-day hype, then settles wherever the market decides it's actually worth.
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Educational content only — not financial advice.