IPO(InitialPublicOffering)
Definition
The process by which a private company offers its shares to the public for the first time through a stock exchange listing. IPOs allow companies to raise capital from public investors. Investing in IPOs carries both opportunity and risk, as the company has no listed track record.
Example
When a well-known startup lists on the NSE through an IPO, retail investors can apply for shares during the subscription period. However, listing gains are not guaranteed.
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