What is an IPO and Why Do Companies Go Public?
What is an IPO and Why Do Companies Go Public? The announcement of the IPOs makes for really grand headlines in the finance industry. People heavily trading in stocks meticulously follow upcoming IPOs in India as they are constantly looking to strengthen their portfolio. And as a smart and brilliant investor, we need to be up to date with the upcoming IPOs in India as well. What is IPO? Initial Public Offering or IPO is a process by which a private company can go public by sale of its stocks to the general public for the first time. It could either be a new, young company or an old company that decides to be listed on an exchange and hence, goes public. At the time of issuing their shares to the public, companies can raise equity capital with the IPO, or the existing shareholders can sell their shares to the public. Moreover, companies fall into two categories: Public and Private. A private company is run by a closed group of people with fewer shareholders who don’t give out muc