IPO FULL FORM
Full Form of IPO : Initial Public Offering
What is the full form of IPO ?
No:1. IPO stands for Initial Public Offering.
No:2. It is a process by which a private company can go public.
No:3. In IPO the company offers to sell its first stock to the public.
No:4. Most often, the new or small companies offer IPO.
No:5. At times, it could be an old company which decides to go public to be listed on the stock exchange of the country.
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More about IPO
No:1. IPO is usually offered by companies to generate the capital to expand its business.
No:2. The capital raised through IPO can be used to fund research, development, marketing programs and to pay off the debts.
No:3. A company which goes public by offering its stock is not obliged to repay the capital to investors.
No:4. The company who offers to sell its stock is known as an ‘issuer’ and it needs to hire an investment bank to offer IPO.
No:5. After the IPO, its shares are traded in the open market which means the shares can be sold by investors through secondary market trading.
No:6. Only after a company offers its stock for sale through IPO, the public can invest in it.
No:7. You may contact the owner of private company for investing in his company, but he is not obliged to sell you anything.
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