What is meant By IPO ? Explain in detail.

5 Answer(s)


An IPO / Initial Public Offering is when a company offers its shares to be bought by the general public. After an IPO, the companies shares will start trading in the stock exchange.

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IPO is meant by Initial Public Offering.
This is when a company wants to sell its shares/stock to the public for the first time, the company does it through an IPO which is done in Stock Exchanges.


IPO stands for Initial Public Offering, When the company raise capital from the primary market or first issue is understood as IPO. After the shares issued and allotted subsequent trades are done through stock exchanges/ intermediaries (secondary market).


The first price for which a company offers to sell stock in itself when it moves from private ownership to public trade. More generally, it refers to the actual first sale of stock to the public. Small companies looking for a new source of financing offer most IPOs, but large companies who wish to be publicly traded can offer them as well. An IPO is generally a risky investment, because one does not know how much demand will exist for the stock after its initial offering; the risk comes from the uncertainty about the stock's resale value.


Initial public offering (IPO) or stock market launch is a type of public offering where shares of stock in a company are sold to the general public, on a securities exchange, for the first time.