What is the meaning of IPO?

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.