An Initial Public Offer (IPO) is the issuance of shares for the first time by a private company,which is not listed on the stock exchanges.
IPOs are often used by companies to raise funds for expansion or other purposes, and can also provide liquidity for existing shareholders who want to sell their shares.
Also IPO comes with higher risk as investors can only use the information provided by the company to gauge its growth prospects.
It is less predictable and has higher risk potential as compared to Follow on Public Offer(FPO).
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