
IPO
An IPO (Initial Public Offering) is the process through which a private company becomes publicly traded by offering its shares to the public for the first time. Before going public, the company’s existing shareholders must approve the IPO plan. Once approved, the company typically hires an intermediary, like an investment bank, or may opt for a Direct Public Offering (DPO). The intermediary helps determine the price of the new equity shares that will be listed in the primary market. An IPO allows the company to raise capital while offering investors an opportunity to buy shares in a newly public company.
Related Terms
Interest Coverage Ratio
The Interest Coverage Ratio (ICR) measures a company's ability to pay interest on its outstanding...
Listing Date
The listing date is the day a company's shares become available for trading on a...
Post Closing Session
Post Closing Session involves trading securities outside regular market hours. In India, regular trading runs...
Interest Rate Risk
Interest rate risk is the potential drop in a fixed income security’s value due to...
Bear Market
A bear market is a period characterized by a sustained decline in the stock or...
EBITDA MARGIN
The EBITDA margin is a ratio of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)...