During an Initial Public Offering a private company releases its shares to the public for the first time. The move from private to public ownership occurs upon business transformation to public status. The change from private organization to public status also makes it known as “going public.” By becoming publicly traded companies initiate public share sales which serve three main purposes: growth funding and debt repayment as well as business expansion opportunities. Through IPOs, early investors including founders and angel investors obtain the chance to sell their company shares thus generating profits.