InsiderFlow › Glossary › What is an IPO?

What is an IPO?

An IPO (Initial Public Offering) is a company's stock-market debut: the first sale of its shares to the public.

By going public the company raises capital from investors, and early shareholders can sell part of their stakes. From then on the shares trade freely on an exchange and the company must publish audited accounts and regulated disclosures.

The most anticipated IPOs (Facebook in 2012, Alibaba in 2014, Arm in 2023) draw enormous attention, but buying at the debut is risky: the initial price is set by the underwriting banks and early-month volatility is extreme.

Concrete example

Facebook debuted in 2012 at $38, halved within months, then multiplied more than tenfold over the following decade: IPOs are judged in years, not days.

How you see it in InsiderFlow

On InsiderFlow these concepts come alive on real data: what big funds and insiders are buying, explained every day.

Frequently asked questions

Is buying at an IPO a good idea?

Statistically many IPOs underperform the market in their first years; the initial hype often inflates the price.

What does lock-up mean?

The period (usually 90–180 days) during which early shareholders cannot sell their shares after the listing.