What is an IPO?

An IPO (Initial Public Offering) is the process by which the shares of a private company or corporation are offered to the general public to buy. It is a method by which a company raises capital from public investors. After the IPO, a company becomes public and its shares are traded publicly. 

Points to remember

  • The company is listed on an exchange after it issues an IPO, meaning its shares can then be traded in an open market.
  • In India, public companies are often traded on exchanges like the National Stock Exchange (NSE) [link to #23] and Bombay Stock Exchange (BSE) [link to #24].

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