• 5 years ago
What is an IPO?

IPO stands for initial public offering and sometimes called “going public”. It’s the first time a company sells stock to the public. Before an IPO, a company is private with a few shareholders, typically the founders and sometimes professional investors.

A company "goes public" for a number of reasons, but primarily to raise capital to expand and grow operations. If the company's plans are successful, the stock price should rise, rewarding early stock investors.

An IPO can also be an opportunity for venture capitalists and other early investors to cash out and take profits.

IPO Success Stories:-

Sometimes an IPO is wildly successful, but that is not determined by what happens on the first day or even in the first year. To really have a successful IPO, we have to look much longer term.

The Coca-Cola Company went public in 1919, and a single share cost $40. But within a year, that price fell to $19. A failure right? You could hardly blame investors for selling off. But, of course, we all know today that Coca-Cola wasn’t a failure. It’s one of the most recognized brands in the world.

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