What does it mean when a company “goes public”?

Question

What does it mean when a company “goes public”?

In: 10

Answer 1

It means that the company becomes listed on a stock exchange, and anyone can purchase stock from the open market instead of one having to find a specific seller and making a closed deal. On the stock market, every transaction is listed, so you can have a better idea of what other people believe the stock is worth.