IPO (Initial Public Offering)

Initial public offering (IPO) is the process in which private corporates raise funds by offering shares to the public or new investors. An IPO is a critical milestone in the growth of a business, especially in the long term. It allows the firm to draw money from the public capital market. In many scenarios, an IPO seems to be the only means to fuel accelerated expansion and growth for an enterprise. The growth in the volume of IPOs issued implies a thriving stock market and economy. An IPO also boosts the company’s reputation and recognition in the public.