IPO

An initial public offering (IPO) happens when a private sector company sells its first equity shares were distributed to the general public. In essence, an IPO denotes the transition of a company's ownership from private to public. As a result, the IPO process is frequently referred to as "going public." Both start- ups and corporations that have been in existence for decades might opt to go public via an IPO. Companies frequently conduct an initial public offering (IPO) to raise funds to pay off debts, fund expansion initiatives, improve their public profile, or allow firm insiders to diversify or Liquidity can be created by selling all or a portion of their private shares as part of the IPO. When a company decides to "go public," it chooses a lead underwriter to help with the securities registration process and the distribution of shares to the general public in an IPO. After that, the lead underwriter forms a syndicate of investment banks and broker dealers to sell IPO shares to institutional and individual investors.