Stock Market Beginner

IPO (Initial Public Offering)

💡 In plain English: When a private company sells shares to the public for the first time on the stock exchange.

Definition

The process through which a private company offers shares to the public for the first time, listing on a stock exchange.

📌 Real-World Example

India's largest IPO in 2022 raised ₹21,000Cr when the government divested shares in a public-sector insurer. Retail investors could apply in lots via their Demat account.

Related Terms

Market Capitalisation
The total value of a company's shares — price × number of shares =...
P/E Ratio (Price-to-Earnings)
How much you're paying per rupee of a company's earnings — a key...
Blue-Chip Stock
Shares of large, well-established companies with a long track...
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