a private corporation that needs more money to expand or to take advantage of opportunities may have to obtain financing by "going public" through a(n) initial public offering, that is, becoming a public corporation by selling stock so that it can be trade in public markets.
<h3>How is a private business become public?</h3>
A firm that wants to go public must first price and list its shares, distribute IPO shares to the initial investors, and allow trading of those shares on a stock exchange before filing a registration statement with the SEC that the SEC deems "effective.
<h3>What takes place after an IPO for a company?</h3>
Through underwriting due diligence, IPO shares of a firm are valued. When a firm goes public, the privately held shares become publicly owned, and the existing private shareholders' shares are now worth the public trading price.
<h3>How does an IPO operate and what is it?</h3>
A private firm goes public through an initial public offering (IPO), in which its shares are sold on a stock exchange. Investment banks help private companies sell their shares to the public, which involves extensive due diligence, marketing, and regulatory requirements.
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