What is the full form of IPO?

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    • An 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. In simpler term, it means any company who is offering its share for the first time to public and other investors does so by launching an IPO. The main motive behind raising an IPO is capital exchange. An organization looking to expand itself might raise capital for itself through IPO. A private company trasnforms into a public company through this mode. The main disadvantage of IPO is that the company has to disclose certain information to the public, which can prove helpful to the competitors. One of the most important document while raising an IPO is prospectus, using which details of the proposed offering are disclosed to potential purchasers.

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