What does it mean when a company “goes public”?
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It means that they begin offering shares (portions of ownership) for sale in the public markets – the most famous of these is the New York Stock Exchange (NYSE). Prior to going public, portions of the company can be bought or sold, but this is done via individual transactions between the current owner(s) and buyer(s); going public greatly simplifies the sales process, as portions of ownership are commodified and sold in a large marketplace.
Going public is not an easy task. There are many regulatory hurdles that a company must clear in order to be listed on a public stock exchange, as well as quarterly/yearly compliance activities they must undertake. The advantage is that going public generates a _huge_ cash infusion for both the company in original investors.
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