Introduction: An Initial Public Offering (IPO) is a significant milestone for a company. It marks the transition from a privately held company to a publicly traded one. In simple terms, an IPO is the process of selling a company's shares to the public for the first time. The IPO Process: Hiring Underwriters: Companies typically hire investment banks to underwrite the IPO, which involves pricing the shares and managing the sale. Filing the Registration Statement: The company files a registration statement with the Securities and Exchange Commission (SEC) in the U.S. or the equivalent regulatory body in other countries. Roadshow: The underwriters conduct a roadshow to market the IPO to potential investors. Pricing the Shares: The underwriters determine the offer price per share based on demand and market conditions. IPO Launch: The shares are offered to the public through a stock exchange. IPO vs. FPO: While an IPO is the initial public offering of a company's shares, ...
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