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What is initial public offering (IPO)?
Initial Public Offering (IPO) refers to the process where private companies sell their shares to the public to raise equity capital from the public investors. The process of IPO transforms a privately-held company into a public company. This process also creates an opportunity for smart investors to earn a handsome return on their investments.
How do IPO shares work?
Instead, comparables may be used. However, supply and demand for the IPO shares will also play a role on the days leading up to the IPO. An IPO is an initial public offering, in which shares of a private company are made available to the public for the first time. An IPO allows a company to raise equity capital from public investors.
