An IPO, or Initial Public Offering, is the process through which a private company offers its shares to the public for the first time. This allows the company to raise capital from investors, which can be used for expansion, paying off debt, or other business needs. Once the shares are sold, the company becomes publicly traded on a stock exchange. During an IPO, the company typically works with investment banks to determine the share price and the number of shares to be offered. After the IPO, the company's shares can be bought and sold by the public, increasing its visibility and potentially its market value.