What is an IPO? Why Does Company Go Public?

What is an IPO?
An initial public offering (IPO) is a process to raise money through the public listing of shares on a new stock exchange. In an IPO, a private company issues shares for the first time to the public at a pre-determined price/price band. The company sells shares to retail investors as well as institutional investors. The process allows investors to assess and maybe take exposure to the potential growth of a business.
Why Does a Company Go to Public?
Many companies consider IPO listing as a means to boost growth, create new opportunities for their business and provide a liquid market for their securities. Besides, some companies plan overseas listing to access global markets and private equity investors use IPOs to exit their investments.
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