What is the process called when a company issues stock to the public for the first time?

The process in which a company issues stock to the public for the first time is known as an Initial Public Offering, or IPO. This event marks a significant milestone for a company, as it transitions from being privately held to publicly traded. During an IPO, shares are made available on a stock exchange, allowing the company to raise capital from a variety of investors, which can be used for growth, expansion, paying off debt, or other corporate purposes.

In this context, an IPO serves as a platform for companies to access public capital markets, thereby enhancing their visibility and credibility. It also gives early investors a chance to realize returns on their investments by selling shares to the public. Overall, an IPO is a critical step for many companies looking to scale their operations and engage with a broader base of investors.