(INITIAL PUBLIC OFFERING)IPO
IF A COMPANY WANTS TO SELL STOCK SHARES TO THE GENERAL PIBLIC,IT CONDUCTS AN IPO.BY DOING SO, A COMPANY GOES FROM THE STATUS OF PRIVET(NO GENERAL SHAREHOLDERS)TO PUBLIC(A FIRM WITH GENERAL SHAREHOLDERS)PRIVATE COMPANIES CAN HAVE SHAREHOLDERS,
BUT THEY ARE FEW IN NUMBER AND THEY AND THE FIRM ARE NOT SUBJECT TO REGULATIONS BY THE SECURITIES AND EXCHANGE COMMISSION. THIS CHANGES DRAMATICALLY WITH AN IPO,AS WE WILL SEE LATER.
AN IPO USUALLY TAKES THREE TO FOUR MONTHS FROM THE BEGINING TO THE FIRST DAY’S TRADING ON AN EXCHANGE.