What is Initial Public Offering (IPO)? An initial public offering (IPO) is when a private company sells shares of its ownership to the public for the first time. This allows the company to raise capital and become a publicly traded company. The IPO process is complex and involves a number of steps, including: Hiring an investment bank to help with the IPO Filing a registration statement with the Securities and Exchange Commission (SEC) Conducting roadshows to meet with potential investors Setting the IPO price Selling the shares to the public To raise capital to fund growth To provide liquidity for existing shareholders To increase the company's visibility and prestige Once the IPO is complete, the company's shares will be listed on a stock exchange, where they can be bought and sold by investors. There are a number of reasons why a company might go public. Some of the most common reasons include: Raising capital An IPO can be a great way for a company to raise capital to fund
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