What is the full form of IPO ?

Ipo Description:
The full form of IPO is an Initial public offering which is the first time when a company issues their shares to the public as the name suggests.
The initial public offering is basically when a company decides to go public and list itself in the share market where people can buy and trade shares or stocks of that company.
The initial public offering is a time when a company especially private companies become a publicly-traded company.
Anyone who buys a share of that company becomes a shareholder that means the person now has a share in that company because they have invested their money to buy the company stocks.
There are many reasons for a company to issue its IPO and go public but mainly it is to raise money from the public through investments to grow their business.
The initial public offering includes three main investor categories such as –
According to the category of the investor, the share allocation of IPO is decided. An individual often falls under the last category of Retail individual investors.
One is allowed to invest in small lots worth Of Rs 1000 to 15000 as an individual investor. One can apply for up to 2 lakh in an IPO. The retail category share demand is calculated by the number of applications received on the announcement of IPO.
However, when the demand of shares in an IPO exceeds the amount of allocation this is called oversubscription. An IPO can be oversubscribed five times over.
In this case, retail category shares are offered to individual investors based on the lottery system. This whole process is computerized so there would not be any impartial allocation of the shares in an IPO.
There could be many reasons for the release of IPO by a company such as –
There are many advantages one can get by buying shares in an Initial public offering such as –
What is an IPO in India?
IPO or initial public offering is the time when an existing or new company decides to go public and offers its stocks and shares to the public. Individuals can invest in a company in the beginning stage through their IPO release.
The initial public offering cannot always be good for both