Answer Posted / md asif ali
The first sale of stock by a private company to the public.
IPOs are often issued by smaller, younger companies seeking
the capital to expand, but can also be done by large
privately owned companies looking to become publicly traded.
In an IPO, the issuer obtains the assistance of an
underwriting firm, which helps it determine what type of
security to issue (common or preferred), the best offering
price and the time to bring it to market.
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