Issuing an is an exciting time for a company because it means it has become successful enough to require much more cash to continue to grow. An IPO requires a great deal of work, which is why it requires a bank, such as Goldman Sachs or Morgan Stanley, to help it go through the complexities.
An IPO is also an exciting time because the initial shares of stock are usually only available to those who know about it. Many investors prefer to get in "on the ground floor." That's because IPO shares can often skyrocket in value when they are first offered. However, there is usually a clause that restricts IPO investors from selling for the first 30 days. Sometimes an IPO's value skyrockets, only to plummet to earth a few days later.
The number of IPOs being issued is usually a sign of the stock market's, and economy's, health. During a recession, IPOs drop because it's not worth the hassle if stock prices are depressed. When IPOs increase, it usually means the economy is getting back on its feet again.
