Definition of Go Public

When a privately held company offers shares to the public for the first time through Initial Public Offering (IPO), the act of becoming an IPO is called ‘going public.'

Points to remember:

• Going Public allows even small companies to operate without the help of any credit.
• It is a way of generating money without having to repay the investors, but of course, this is not how it should be perceived as by the owners of the company.
• Going public requires companies to meet certain conditions depending on their country. For example, in India - a company must be generating a profit for at least 3 years before going public.