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What is an IPO (Initial Public Offering)? Who decides the Price Band of an IPO?

What is an IPO (Initial Public Offering)?


Initial Public Offering (IPO) is the process by which a company raises funds through sale of its stock to the investors for the first time. Generally with the help of an IPO, a private company goes to the general public and gets listed on stock market exchange. In other words, it can be said that in the name of an IPO, a company raises equity capital by issuing new shares to the public and these shares are further traded in an open market. Continue reading