What does "going public" refer to for a company?

"Going public" refers to the process where a privately-held company sells its shares to the public for the first time in the primary market, typically through an initial public offering (IPO). This is a significant milestone for a company because it transitions from being privately owned to publicly traded, which allows it to raise capital from a broader pool of investors.

The IPO process involves valuing the company, detailing its financial and operational information, and offering shares to the public. The funds raised during this process are often used for expansion, paying down debt, or other corporate purposes. Once a company goes public, its shares can then be traded in the secondary market, but that process itself does not constitute "going public"—it specifically relates to the initial sale of shares to public investors.

Through this transformation, a company also gains increased visibility and credibility, which can further enhance its growth prospects.