IPO Secrets - Version 1.0 What Is An IPO? The term "IPO" is an acronym for "initial public offering". An initial public offering is a company's first sale of stock to the general public. This is the first time that the company has enabled the general public to becomeshareholders in the company. This is what the Wall Street phrase "goingpublic" means.A company will go public in order to raise money. When the companyexecutes the IPO, their stock will be listed on a stock exchange for the firsttime. The general public will then have the opportunity to buy the stock andbecome shareholders in the company. The company will then use thismoney for the benefit of the company. They may use it to pay off debt,build new plants, increase their workforce, or a variety of other things.