What is an IPO?
An IPO is the process by which a private company publicly trades its shares on a stock exchange, known as “going public.” An IPO is the first opportunity to invest in a company’s ownership unit and acquire shareholders’ equity.
Public stock offerings allow companies to raise money from the public rather than relying on private capital, greatly expanding the pool of capital that can be used to pay down debt, fund business plans and enhance the company’s image.
Financial requirements of listed enterprises
The regulations surrounding listed companies also require them to disclose all relevant financial information, an analysis of their strengths, weaknesses, and future opportunities and challenges. The information is disclosed in quarterly or annual financial statements.