Initial Public Offering
An IPO is when a company is first ‘floated’ on a stock exchange. A private company may choose to become publicly listed as a means of raising capital from shareholders in exchange for shares in the company. Funds  (Capital) raised at the IPO go to the company to be used for growth initiatives, acquisitions, or another use that the company has specified. Beyond the IPO, shares in the company are bought and sold between investors on a stock exchange.

Leave a Reply

Your email address will not be published. Required fields are marked *