initial public offering IPO

What is initial public offering of stock (IPO) explained with example

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Initial Public Offer (IPO)

An initial public offering (IPO) is the first instance when the stock of a company is offered to the public. An IPO is a process through which a company can raise fund. The funds raised can be for any purpose such as restructuring debt, rewarding shareholders etc

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what is ipo

 

EXAMPLE

Mr. X has a small Burger shop X burgers.

Mr. X wants to increase the number of locations so more people can enjoy its delicious Burger.

Although X burgers is profitable he doesn’t have the money to open new stores without taking debt from banks because for the loan he has to pay the interest.

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