Friday 24 January 2014

Initial Public Offering (IPO)



An Initial Public Offering (IPO) is a First Time Stock Market Launch of a Private Company to become Public. In this process, the Shares of a Stock of a Company are sold to the general Public, for the First Time.  



An IPO is generally issued by a smaller or younger Company but sometimes large Enterprises also go this way. 



The Company which offers its Shares is known as the 'Issuer'. It does so with the help of Investment Bankers. After an IPO is launched, the Company gets Listed and its Shares start Trading on Stock Exchanges. These can further be Traded by Investors through the Secondary Market. 







Regards,




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