ABSTRACT
Initial Public Offerings (IPOs) are the first time that a company sells stock to the public. An IPO is a type of a primary offering, which occurs whenever a company sells new securities, and differs from a secondary offering, which is the public sale of previously issued securities, usually held by insiders. A company that is thinking of going public should start acting like a public company as much as two years in advance of the IPO. Several steps should be taken at that time, include preparing detailed financial statements on a regular basis and developing a business plan.
