IPOs
If you have even a little knowledge about the stock market, then you must have heard about IPO and if you have not heard, then it does not matter because in today's blog we are going to tell you a lot about IPO.
By SVT Published November 24, 2024
What is IPOs
The full name of IPO is Initial Public Offering, which we call Initial Public Offering in Hindi. It means an offer to buy shares given initially when any company goes public.
Through IPO, a private company is converted into a public company. Through IPO, the company becomes public and gets listed in the stock market. Through IPO, the company sells its shares to the public and raises capital so that the company can expand its business in future. Through IPO, any person can take part in the ownership of that company because he has shares of that company. In this process of IPO, the investor gets a good opportunity so that he can get good returns on his investment.
Advantage of IPOs
We can benefit by investing in IPO but investing in every IPO can also be harmful for us because the possibility of profit and loss in IPO is equal, so we should invest in that IPO only after having complete information about the basic fundamentals of the company. IPO is a fast time for a company when the company opens its shares to the public and this happens when a private company becomes a public company.
Being a private company, the company has less number of shareholders but when a company sells IPO for its growth, then the number of shareholders it has is in millions. When the company starts touching new heights in its growth process and until it is sure that it is ready for SEBI regulation and is ready to take the responsibility of public shareholders, then the company shows its interest in becoming a public company and advertises it. During the IPO, the company starts selling its shares openly to the public in the market and as an investor you can directly buy the company’s shares and become a shareholder. But before buying shares, you must know that as an investor you can buy the company’s shares, but to sell those shares you will have to wait till the IPO is listed on the stock exchange, only then you can sell the shares of that company.