What is IPO

An initial public offering (IPO) or stock market launch is a type of public offering where shares of stock in a company are sold to the general public, on a securities exchange for the first time. Through this process, a private company transforms into a public company. Initial public offerings are used by companies to raise expansion capital for business requirements. Companies those wants to release the IPO have to follow some rules and regulations under companies Act and SBI. A company selling shares is never required to repay the capital to its public investors. After the IPO, when shares trade freely in the open market, money passes between public investors. Any one can buy or sell the shares once listed in respective stock exchanges and available for trading. Companies also provides some dividends to their shareholders from their earned profit The shareholders have the rights to vote into the companies board of meetings.