#ipo explained

The initial public offering, or IPO, is the first step into the stock market for a lot of new investors. When a business goes public, it makes its shares available to retail investors for the first time, allowing regular investors to participate in the company's development from the start. We will go over the definition of an initial public offering (IPO), its goal, how businesses obtain money through IPOs, and how businesses get money following IPO allocation in this blog.

What is an initial public offering (IPO)?

The procedure by which a private firm makes its shares available to the public for the first time is known as an initial public offering, or IPO. Following an IPO, the business is listed on a stock exchange such as the NSE or BSE, and its shares start to trade.

Ownership typically rests with the founders, early investors, or private equity firms prior to the initial public offering. Retail investors will also be able to buy shares after the IPO, which is a significant step that enables the general public to follow the company's development.