The marketplace has seen some impressive initial public offerings (IPOs) come out of the tech world in recent years — LinkedIn, Groupon and Zynga to name a few, with Facebook waiting in the wings.

But what does “going public” actually entail? What’s at stake for these companies? How much does it cost? What are the risks, and what sort of paperwork is required?

If you’re confused by all the business lingo, check out the video above, created by our friend Jeremiah Warren. It breaks the average IPO down to its nuts and blots.

Still have questions? Leave them in the comments below and our business writers will answer post haste.

Image courtesy of iStockphoto, sitox

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