What is an IPO?

When a company decides to sell its shares to the public for the first time, it is termed as Initial Public Offering or IPO.

The purpose of issuing shares to the public is to raise funds. But before going public, the company needs SEBI’s approval.

By buying IPOs, the investors become part-owners of the company. They are now entitled to enjoy dividends with company's success.

However in case, the company does not perform the value of your shares could go down.

Both pros & cons are involved with IPOs. So always do your research and consider your investment goals and risk tolerance.