Initial Public Offering (IPO)
The first sale of a private company's shares to the public.
Definition
An Initial Public Offering (IPO) is the process by which a private company sells its shares to the public for the first time and gets listed on a stock exchange. It lets the company raise capital and gives retail investors a chance to buy in early.
Example
When a company files its Red Herring Prospectus (RHP) and opens its IPO, investors apply within a price band; shares are then allotted and listed on the NSE/BSE.
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