What is an initial public offering (IPO)?

What is an initial public offering (IPO)?

An Initial Public Offering or an IPO is the event where shares of a company are offered to retails investors. It allows common investors like you and me to make an investment in company that aren’t traded on the Stock Market yet. After the IPO is issued and shares are allotted to retail investors, the shares of the company can be traded on the Stock Market. This gives an opportunity to those investors who weren’t allotted shares. The company offers a fixed number of shares at a fixed price which is generally considered a discount by the company. All you need is a Demat account and your PAN card to apply for an IPO.

Initial Public Offering (IPO) is a process to raise money through a stake sale by existing shareholders by listing a company on a new stock exchange. It’s named IPO as it’s the first time a company is raising money through public forum though a particular stock exchange. The company, when private, usually depends on private funding from investors such as founders, friends, family, angel investors, and venture capitalists. Although private markets provide growth funding to budding companies, the ultimate exit of private investors is public markets.

Initial Public Offering is when the company first takes its shares public. This is in brief about IPO. You can know more about IPO Application on the web.