Initial Public Offer

The offering of shares and stocks made by a company for the first time to the public is known as the Initial public offering. The main objective of such offering is to raise capital which would be used for business expansion. Private owned companies also offers shares because this gives them a chance to become a public traded company. The company wishing to offer such shares can take the help of Underwriting Firms who helps in determining the best offering price and the time when such shares should be made public.