Stock market

IPO (Initial Public Offering)

When a company sells its shares to the public for the first time and starts trading on a stock exchange.

Why does it matter?

It is how a private company becomes a public one, raising money and letting its early owners sell some shares.

How do I read it?

After an IPO, the company must publish its results regularly. The price on the first day of trading is set by the market and can end up far from the IPO price.

Example

Nubank set its IPO price at $9 per share in December 2021. From then on, its price was set by buyers and sellers every day, and it began publishing its results like any other public company.