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 West Virginia, as in all 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 have enough information to make informed decisions. Once a company goes public, it must adhere to ongoing reporting obligations, such as filing annual and quarterly reports (Form 10-K and Form 10-Q), and disclosing material events through Form 8-K. West Virginia does not have its own securities exchange, so companies in WV looking to go public would typically list on national exchanges like the New York Stock Exchange or Nasdaq. While the federal laws are the primary regulatory framework for IPOs, West Virginia businesses must also comply with state securities laws, known as 'blue sky laws,' which are administered by the West Virginia Securities Commission. These laws regulate the offer and sale of securities within the state to protect investors from fraud.