As an organisation grows, it typically moves from a private or small public company, to a company listed on a stock exchange, such as ASX or NSX.
As part of the listing’ process, the company undertakes an IPO. IPO stands for Initial Public Offering and occurs when a company’s shares are offered to the public for the first time.
By selling these shares, the company raises money. This is called a capital raising.
Once the IPO is closed, the shares are then settled and allotted (i.e created). The company will then list on ASX and these shares can be bought and sold on the secondary market (more commonly known as the stock market).