IPO – Initial Public Offering
Initial Public Offering is done, when a company wants to public for the first time for raising capital and then get traded in any stock exchange. The stocks of the company are sold to the general public for the first time. A company selling shares is never required to repay the capital to its public investors.
The major benefit of IPO comes from the capital that the company gets from its investors. Now, the money can be invested in any of the plans that the company have. Some companies also go public due to the money crunch they were facing during their regular operations.