InvestorQ : What do I understand by the term IPO in stock markets?
Lavanya Subramanian made post

What do I understand by the term IPO in stock markets?

Answer
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Archita Jajjoo answered.
1 year ago


An Initial Public Offering (IPO) is the process by which companies raise funds from the market. Businesses require funds for a variety of reasons. They could be requiring funds for expansion of their capacity, they could be looking at diversification into new business lines, they could be looking at expanding their presence across India and abroad or they may even be looking to repay their high cost loans. All these funding requirements can be met through an IPO. As investors what you need to understand is how to apply for IPO and, more importantly, how to buy IPO online.