What is the term for dividing ownership of a privately held company into shares sold to the public?

The term for dividing ownership of a privately held company into shares sold to the public is specifically referred to as an Initial Public Offering, often abbreviated as IPO. An IPO occurs when a company transitions from being privately owned to publicly traded by issuing shares to investors in the public market for the first time. This process allows the company to raise significant capital, which can be utilized for various growth initiatives, such as expanding operations, funding research and development, or paying off debt.

While the other choices may relate to aspects of public finance or offerings in some way, they do not accurately capture the distinct process that occurs during an IPO. Private Placement relates to the sale of securities to a small number of select investors, rather than the public, while Public Offering might seem close but does not specify that it's an initial offering. Stock Market Launch is a colloquial term that is not formally recognized in finance and does not convey the technical specifics of the IPO process. Thus, the correct choice precisely describes the procedure of publicly offering shares for the first time.