BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Shares issued in Primary market in the form of IPO and FPO. IPO means?
A
India Public Offer
B
Initial Private Offer
C
Initial Public Off
D
Initial Public Offer
Explanation: 

Detailed explanation-1: -All, in the end, IPO means the share issued by the company are available to the general public. While FPO means the first-time issue of shares listed on the stock exchange to the existing shareholders of the company or to new investors.

Detailed explanation-2: -Meaning: IPO is the first issuance of shares by a company while an FPO is the issuance of shares by a company so they can raise additional capital after its IPO.

Detailed explanation-3: -When a private company first sells shares of stock to the public, this process is known as an initial public offering (IPO). In essence, an IPO means that a company’s ownership is transitioning from private ownership to public ownership. For that reason, the IPO process is sometimes referred to as “going public."

Detailed explanation-4: -A follow-on public offer (FPO) is the issuance of shares to investors by a company listed on a stock exchange. A follow-on offering is an issuance of additional shares made by a company after an initial public offering (IPO). Follow-on offerings are also known as secondary offerings.

Detailed explanation-5: -An initial public offering, or IPO, is an example of a primary market. These trades provide an opportunity for investors to buy securities from the bank that did the initial underwriting for a particular stock. An IPO occurs when a private company issues stock to the public for the first time.

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