What does Going Public mean?

Answer:
Going public is the term used to describe the

process of selling shares of stock in a previously privately held company on the open market. When a company goes public, it makes an initial public offering (IPO) of stock.

Those who purchase shares of stock receive ownership interest in the company. The business entity can use proceeds from the sale of stock to grow the business or fund current operations.

Companies that go public are regulated by the Securities and Exchange Commission (SEC), and the requirements to make in IPO are very stringent. For example, the Board of Directors for companies that go public must include outside directors. Additionally, companies that wish to go public must have several years worth of audited financial statements. Going public can raise a significant amount of equity capital for a business, but can be an expensive and time consuming process.