An initial public offering—also known as an IPO—is the process by which a privately-owned/privately-held company begins selling stock to outside investors, and transforms the company from a private company to a public company. Shares of public companies (also called publicly-traded companies) are usually traded on one of two stock exchanges—the New York Stock Exchange or the Nasdaq. A public company can raise money (capital) it needs by issuing and selling shares of its stock on the stock exchange on which it is listed. But public companies must comply with significant reporting and disclosure requirements established by the U.S. Securities and Exchange Commission that private companies do not have to comply with.

In Georgia, as in all states, an initial public offering (IPO) is governed primarily by federal law, specifically the rules and regulations enforced by the U.S. Securities and Exchange Commission (SEC). The SEC requires companies going public to file a registration statement, typically using Form S-1, which includes the prospectus with detailed financial and business information about the company. This process is designed to protect investors by ensuring transparency and disclosure of material information. Once a company is public, it must adhere to ongoing reporting obligations such as annual (10-K), quarterly (10-Q), and current reports (8-K), along with proxy solicitations and insider trading disclosures. While the state of Georgia does not have its own securities exchange, companies in Georgia looking to go public will typically list on national exchanges like the New York Stock Exchange or Nasdaq. Georgia businesses must also comply with state securities laws, known as 'Blue Sky Laws,' which are administered by the Georgia Securities Division. These laws require registration of securities offerings and provide for the regulation of broker-dealers, agents, investment advisers, and their representatives operating in the state.