Understanding IPOs: What They Are and How They Work?

Thu, 12 Dec 2024 10:08:36 +0000

An Initial Public Offering (IPO) is when a private company sells its shares to the public for the first time to raise capital and become publicly traded. This process helps the company get funding, gives early investors a chance to sell their shares, and increases its visibility in the market. The IPO process includes choosing underwriters, filing necessary documents, promoting the offer, setting the share price, and listing on a stock exchange. While IPOs can offer good returns, they also carry risks like market ups and downs and possible overpricing.