Sunday, August 24, 2014

What is IPO



IPO means Initial Public Offering, limited companies offering to the public to list their companies in Stock exchange. Once the company is listed in share market and it will be available for public. Any member of particular share market can able to purchase the share.

When company wants to list their company in share market, they will go for IPO. The primary idea for IPO is to raise the capital for the company. Also there is an offer for public to purchase the share.

In simple words when a company want to raise a capital, they will go for IPO ( One way to raise company capital) by listing the company share in share market, anyone can purchase the company share once company listed their share.

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