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What Is an Initial Public Offering?

Upcoming IPOs prompt consideration for what it means to “go public.”

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Airbnb recently submitted documentation to the Securities and Exchange Commission to take its shares public. This is an important step in the company’s initial public offering, or IPO.

IPOs are a crucial step in becoming a public company. What are they, and how do they work?

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Sachin Nagarajan does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.