The full form of IPO is initial public offering. When a company sells its shares first time directly to the public then it is call an IPO. When a startup or the company which is in business form a long time grows in size then to keep pace of growth and to further expand the companies across other cities or countries or to tap other national or international markets, the company needs funds. This fund may be obtained either in the form of loan or equity. Public buy the shares of the company and give money to the company which is utilized by the company to further expand or to run its day to day operations.
