Initial public offering (IPO) or stock market launch is a type of public offering in which shares of a company are sold to institutional investors and usually also retail (individual) investors; an IPO is underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock
Benefits of IPO
It presents an opportunity for investors to invest in what may turn out to be big stocks in the future at a lower initial investment. If the IPO is successful, they stand to earn a whole lot in annual dividends. The shares are obtained from the company directly by an application, paying money to the company
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