An Initial Public Offering (IPO) is the first offering of stock by a private company to the public. New public offerings must be registered with the SEC and there are a large number of requirements that must be met in order to do so. An IPO, generally termed an “Exit Event,” is one of signs that a startup has achieved significant success. Most companies will use an investment bank as an underwriter during an IPO to both properly assess the value of their stock and help to provide a sufficient market and demand for the stock.