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 Mississippi, 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 including a prospectus, which discloses essential financial information about the company to protect investors. Once a company becomes public, it must adhere to ongoing reporting obligations such as annual and quarterly reports (10-K and 10-Q), proxy statements, and other disclosures. Mississippi does not have its own securities exchange, so companies in the state looking to go public would typically list on national exchanges like the New York Stock Exchange or Nasdaq. While the federal law preempts most state securities regulation, Mississippi securities laws, known as 'blue sky laws,' still require compliance with certain state-level registration and anti-fraud provisions. These are administered by the Mississippi Secretary of State's Securities Division, which aims to protect investors from fraudulent activities and ensure fair dealing in the state's securities market.