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Definition: The process of selling ownership in a company to the public. The companies use investment banks to raise money by selling shares of stock to investors. The company can then use the money to grow their operations.
TeenAnalyst Advice: Going public is a quick way for a company to get access to a lot of money. The benefits of going public are that it raises money from the company and makes it easier for employees to cash in and out of their shares.
The disadvantage is that it opens the company up to greater public scrutiny. Once a company goes public, it has to make its financials publicly known and it is responsible to all of its shareholders.
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