What event occurs when a company sells stock to the public for the first time?

The event that occurs when a company sells stock to the public for the first time is known as the Initial Public Offering (IPO). This is a significant milestone for a company, as it transitions from being privately held to publicly traded. During an IPO, the company offers shares to the general public on a stock exchange, which allows it to raise capital for further growth, expansion, or debt reduction.

The IPO process involves regulatory scrutiny and requires the company to disclose a wealth of financial information to potential investors, which serves to promote transparency and inform buyers about the company's operations and financial health. This public offering also provides liquidity for early investors and employees holding stock, as well as establishes a market valuation for the company.

In contrast, a rights offering allows existing shareholders the option to purchase additional shares at a discount, while a follow-on offering refers to any subsequent sale of stock after the IPO. Private placement involves selling securities to a select group of investors, rather than the general public, and does not entail the extensive regulatory requirements that accompany an IPO.