What is an IPO?

The giant Chinese ecommerce company Alibaba went public in September in the world’s biggest IPO raising just over $25 billion. It joined the ranks of other tech companies who have had IPO’s this year including action-camera manufacturer GoPro and customer-support software creator Zendesk. But what exactly is an Initial Public Offering or IPO? This video explains exactly what it is as well as what it means for companies that decide to go public.