ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A corporate may raise capital in the primary market by way of an initial public offer, rights issue or private placement. An Initial Public Offer (IPO) is the selling of securities to the public in the primary market.

Detailed explanation-2: -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-3: -An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Companies must meet requirements by exchanges and the Securities and Exchange Commission (SEC) to hold an IPO.

Detailed explanation-4: -Initial public offerings (IPOs) occur when a company sells shares on listed exchanges for the first time. Secondary or follow-on offerings allow firms to raise additional capital at a later date after the IPO has been completed, which may dilute existing shareholders.