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Initial Public Offer (IPO)
June 07 , 2012

An Initial Public Offering (IPO) is a process where a company offers its shares for investments by the general public. After this process, shares of the company are traded on the Indian stock markets. Usually, atleast part of the money goes to buy new shares offered by the company. The company uses this fresh capital to fund its growth plans.

Thereafter, the stock opens for trading in the markets – a process called listing. Such companies and their stocks are said to be ‘listed’ or ‘publicly listed’. The name of the company changes from ‘XYZ Private Limited’, to ‘XYZ Limited’.

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