WHAT IS IPO? INITIAL PUBLIC OFFERING?

An Initial Public Offering (IPO) is a significant event in the life of a company, marking its transition from a private entity to a publicly traded one. During an IPO, a company offers its shares to the public for the first time, allowing investors to purchase ownership stakes in the business. This process helps the company raise capital, which can be used for various purposes such as expanding operations, investing in research and development, or paying off existing debts. Additionally, an IPO provides a way for early investors and founders to realize gains on their investments. The process involves regulatory scrutiny and requires the company to disclose comprehensive financial information, ensuring transparency for potential investors. Overall, an IPO can enhance a company's visibility and credibility in the market while providing it with the resources needed for growth and innovation.