What does it mean to go public?

Going public refers to the process by which a private company offers its stock to the public for the first time, typically through an initial public offering (IPO). This allows the company to raise capital by attracting investments from a broader pool of investors, including institutional and retail buyers. Once the company's shares are publicly traded on a stock exchange, it gains access to greater funding opportunities and increased visibility within the market.

When a company goes public, it must comply with regulatory requirements, including financial disclosures, which enhance transparency and accountability. This transition often signifies a new phase of growth for the company, as it can utilize the funds raised for expansion, paying off debts, or investing in new projects. The influx of capital from public investors can also lead to an increase in the company's valuation and provide an ability to attract talented employees through stock options.