IPO
An IPO (Initial Public Offering) is the process through which a private company becomes publicly traded by offering its shares to the public for the first time. Before going public, the company’s existing shareholders must approve the IPO plan. Once approved, the company typically hires an intermediary, like an investment bank, or may opt for a Direct Public Offering (DPO). The intermediary helps determine the price of the new equity shares that will be listed in the primary market. An IPO allows the company to raise capital while offering investors an opportunity to buy shares in a newly public company.
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