™A company selling newly issued shares can raise capital, while an offering can also include existing shareholders selling their shares. Read how proceeds are allocated.
Stocks
Initial public offering (IPO)
A company’s first registered sale of shares to the public.
Plain-English context
Put the definition to work.
An offering can contain new and existing shares; do not assume all proceeds go to the company.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. SEC — Types of Registered Offerings