What is IPO (Initial public offering)

When a private company issues shares to the public for the first time, it is called IPO or Initial public offering. The company can decide to go public for a number of reasons including raising money for growth or to allow employees, owners, or early investors to liquidate their shares.

Thank you for presenting such an easy definition of IPO. Many of the new age IPOs are hitting the market and at the same time, many of the venture capitals are exiting their position at sky-high valuation, thus not leaving much room for retail investors who are applying for the 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.