Part 1: What is IPO and Why Should You Consider Investing in It?
Part 1: What is IPO and Why Should You Consider Investing in It? Introduction: Understanding IPOs in the Stock Market If you have ever wondered how big companies raise money or how they get listed on the stock exchange, the answer is IPO (Initial Public Offering) . For many investors, IPOs are an exciting opportunity to invest early in a company that has the potential to grow exponentially. But before you jump in, you need to understand what an IPO is , how it works, and whether it suits your financial goals. This guide will explain what an IPO is , its types, benefits, risks, and whether investing in an IPO is the right decision for you. What is an IPO? An IPO (Initial Public Offering) is the process by which a privately owned company offers its shares to the public for the first time. In simpler words, it’s when a company decides to list itself on the stock exchange (like NSE or BSE in India, or NYSE and NASDAQ in the USA) to raise funds from retail and institutional investors...