A public offering is a process where a company sells its shares to the general public for the first time, often through a stock exchange. This allows the company to raise capital to fund its operations, pay off debt, or invest in growth. The shares are made available to individual and institutional investors, making it possible for anyone to buy a piece of the company. There are two main types of public offerings: initial public offerings (IPOs) and follow-on offerings. An IPO occurs when a company first goes public, while a follow-on offering happens when a company that is already public issues additional shares. Both types help increase the company's visibility and can enhance its market presence.