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Companies which are in need of large amounts of capital for expansion, look to the public. They get the public interested to invest in their company by means of advertisements and the interested people directly buy the shares of that company, by filling up the forms and attaching the required DD, and sending it to the company directly. And when a company is going public for the first time, those shares are called IPO; initial public offers.
<span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>IPO (Initial Public Offering):When the company Sells it’s Shares to the Public for the first time ,after complying with SEBI norms and conditions.</span>
IPO stands for Initial Public Offering. This is the process by which a company, in need of huge capital for their business, offers its shares to public for money. Since its a first time offering in the company’s history, its known as IPO otherwise its known as FPO. This is the direct dealing between the company and the public, where the company publishes the news through advertisement with details and the public may buy the shares (within the time range). This transaction generally happens through banks.
IPO is initial public offer. When a company needs huge capital they issue shares in public and the public will buy shares. Public will get the profit from company based on their face value.
IPO is Initial Public Offer. When for first time if the person need huge capital to start business and issues the share to public then it is IPO. In IPO promoter first advertise about his company to public and to buy his shares and then public buy shares and have rights to the dividend. Once he receives capital then he starts business.
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