Initial public offering refers to a company going public, by offering its shares for sale. This is done to raise capital, which the company can utilize for its expansion, research, invest in infrastructure, projects etc.
The advantage associated with this type of sale is that the company is not obligated to return the money to the investors. Once the IPO is completed, the shares are traded in the stock market. Buyers can buy and sell it for short gains or hold on to it for long term gains.
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