IPO Full Form is Initial Public Offering. It is a process by which a private company can sell its shares to the public in general. It can be a new, young company or an old company which One decides to get listed on the exchange and so it goes public. Here a company being public means that now the shares of this company can be issued to common people and these people can buy and sell them in the stock market.
The company raises funds in many ways to increase business or meet its other expenses. For the first time, the process of sharing shares among common people is called Initial Public Offering (IPO).
IPO Process
The IPO can be completed in either Fixed Price or Book Building or both ways. The price at which shares are offered in the Fixed Price Method is pre-decided. The price range for Shares in book building is fixed within which the investors have to bid.
Leave a Comment