IPO [Initial Public Offer]-
- Initial public offer is a securities which dilutes the ownership stake and provide ownership to the investors in form of equity.
- It can issue for the purpose to increase fund for the company and for debt financing also.
- IPO command better valuation for the company.
- IPO provide liquidity for the existing shares.
- However IPO is a costly affair because 15%-20% of required fund is spend on raising IPO.
- It is also become time consuming process.