Computer Science, asked by pawanawachar7541, 1 year ago

Define the IPO cycle briefly.

Answers

Answered by MOHDSOOFIYANKHAN
1
Initial Public Offer (IPO) is a process which enables unlisted or private companies to go public so as to raise capital either to repay debt or business expansion or for promoters to dilute stake in the company. It is a great way through which an individual can buy a stake in the company which previously was not possible.

IPO basically represents the first time, a company will financially benefit by the issue of its stock. However, post the IPO , the underlying company will not receive any compensation but the share transfer will take place between buyers and sellers in the open market.

The underwriting investment bank introduces IPO in the market, which also helps the company in getting potential investors. Moreover, the underwriter also helps in settling the price at which it will be issued to the public.

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