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What is an IPO?

Quick Answer

An IPO is when a private company first sells shares to public investors, becoming a publicly-traded company on a stock exchange. Underwriters set the initial price; shares then trade freely on NYSE or Nasdaq.

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Warren Team
Updated January 24, 2026
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The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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