When a company (and investors) first sell shares to the public (e.g. the stock market), the company can raise significant amounts of money to fund operations, growth, or new products. This also offers the investors (and founders) a chance to sell some of their stock for (sometimes significant) cash.
source: https://ecampusontario.pressbooks.pub/mediainnovationandentrepreneurship/back-matter/glossary/
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