What is IPO ?

What is IPO ?

  1. Initial Public Offering (IPO) is a means for the company to get listed on the stock exchange, and allow its shares to be traded on the exchange.
  2. When a company offers its equity to the public for the first time, it is called "Initial Public Offering (IPO)". If the company offers its shares to the public, but not for the first time, then it is called a follow-on public offer (FPO).
  3. An IPO is generally initiated to infuse new equity capital into the firm, to facilitate easy trading of the existing assets, to raise capital for the future, or to monetize the investments made by existing stakeholders.