An Initial Public Offering (or IPO) is an offering of stock or shares to the general public by a company which wants to raise funds for the first time. After an IPO, The company gets listed on the stock exchanges and its shares can be traded on them. An IPO can also be understood as the first sale of stock by a private company seeking to go public
When a company lists its securities on a public exchange, the money paid by investors for the newly-issued shares goes directly to the company (as against in later trades on the exchange, where the money passes between investors). An IPO, therefore, allows a company to tap a wide pool of investors to provide it with capital for future growth, repayment of debt or working capital
When a company lists its securities on a public exchange, the money paid by investors for the newly-issued shares goes directly to the company (as against in later trades on the exchange, where the money passes between investors). An IPO, therefore, allows a company to tap a wide pool of investors to provide it with capital for future growth, repayment of debt or working capital
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