Initial Public Offering (IPO)
- August 29, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Initial Public Offering (IPO)
Subject – Economy
Context – The Centre is set to list India’s largest insurance firm, state-owned Life Insurance Corporation of India, on the stock exchanges to help meet disinvestment targets for the year
Concept –
- IPO is the selling of securities to the public in the primary market.
- Primary market deals with new securities being issued for the first time. It is also known as the new issues market.
- It is different from secondary market where existing securities are bought and sold. It is also known as the stock market or stock exchange.
- It is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public.
- It is generally used by new and medium-sized firms that are looking for funds to grow and expand their business.