What best describes the purpose of an IPO?

The purpose of an Initial Public Offering (IPO) is to raise capital for a company by selling shares to the public for the first time. This process allows the company to access funds for expansion, pay off debt, or invest in new projects. Additionally, an IPO provides liquidity for existing shareholders and enhances the company's visibility and credibility in the market. Ultimately, it transforms a private company into a publicly traded entity.