3 Questions
What is an IPO?
A process of going public to raise capital
What are the benefits of an IPO?
Increased brand visibility
What are the risks of an IPO?
High costs and time associated with the process
Study Notes
- An IPO is the process by which a private company becomes a public company by offering its stock to the public for the first time.
- An IPO allows a company to raise capital by selling a percentage of its ownership to the public, usually through an investment bank or brokerage firm.
- The benefits of an IPO include the ability to fund growth, expansion, research and development, and other business ventures, as well as increased brand visibility.
- The risks of an IPO include the possibility of underperformance of the stock after it goes public, as well as the costs and time associated with the process.
Test your knowledge about the Initial Public Offering (IPO) process, including its benefits and risks. Explore the steps involved in transitioning from a private company to a public one.
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