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| A process in which a privately held company first time offers its share to public. |
A private company has few partners and the promoter(the partner who started the company) do not have to disclose much details to the public about the company. If you wish to buy some shares in these companies, they are not openly available. You need to approach the owner directly and he may or may not issue you the shares. The pricing may also at his will.
Once the company decides to issue the shares to public it is called as an IPO. You need to follow stringant rules and need to give good justification for the pricing.
Every quarter you need to disclose the financial results. The companies report to the regulatory authories of the respective countries.
Once a company goes public, anyone with cash at his disposal can buy the shares from the open markets(stock markets) irrespective of the willingness of the owner for your partnership |
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