When a company decides to go public, it offers its securities to the general public through an IPO. This is done through a prospectus, which outlines the company's financial information and potential risks for investors. The IPO process also involves the company's application to be listed on a stock exchange.

Many companies choose to go public through an IPO as it provides them with access to additional capital and liquidity for shareholders. However, the process can be complex and requires careful consideration of market conditions and regulatory requirements.

As a knowledgeable professor of finance, it is important to understand the various terminologies related to IPOs and their significance in the financial world. By knowing the ins and outs of an IPO, you can better advise your clients and make informed investment decisions.