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 Ohio, as in other states, an initial public offering (IPO) is governed primarily by federal securities laws, particularly the Securities Act of 1933 and the Securities Exchange Act of 1934, which are enforced by the U.S. Securities and Exchange Commission (SEC). These laws require companies to file registration statements and prospectuses detailing financial and other significant information about the company, to ensure that investors can make informed decisions. The company must also meet the listing requirements of the stock exchange it chooses, whether it's the New York Stock Exchange or Nasdaq. After the IPO, the company becomes subject to ongoing reporting obligations, such as filing annual and quarterly reports (Form 10-K and Form 10-Q), and adhering to regulations regarding insider trading and disclosure of material information. While Ohio state law does not specifically govern the IPO process, state securities laws, known as 'blue sky laws,' require registration of securities and regulate the conduct of brokers, dealers, and investment advisors within the state. Compliance with both federal and state regulations is essential for any company considering going public.