What is the full form of IPO:

IPO represents Initial Public Offering.

As the name suggests it is the first time when a company sells its shares publically to the open market. Initial public offering is also known as going public. When any company goes public or it offers IPO, the company gets capital with the sale of stocks. This is the reason why many companies issue IPOs at the time of start up. This is the way with which the company seeks a source of capital so that the growth of funds can be made.

IPO represents that the company will first time benefit financially from the public, by selling its stock shares. IPO acts as a major support and boost the business. IPO is an attractive idea to increase the growth of the business. For the people who invest in any company, it is a very big risk as if the business of the company is not done well, then the investor will be in loss.