What is an ipo? Explain with an example of a firm?
Answers
Explanation:
How it works (Example): The proceeds from the sale of stock shares in an initial public offering provide the issuing company with capital. For this reason, many start-up companies issue IPOs because they're seeking a source of capital to fund growth.
The Initial Public Offering IPO Process is where a previously unlisted company sells new or existing securities. The issuing company creates these instruments for the express purpose of raising funds to further finance business activities and expansion. ... Thus, an IPO is also commonly known as “going public”.
A behind-the-scenes look at what actually goes on during an IPO on the New York Stock Exchange. ... IPOs occur when companies offer their stock, or shares of the firm, to the public for the first time. There are a few exchanges in the US on which stocks are traded, and thus on which IPOs can take place