What is an IPO❓

What is an IPO❓

For this article, I would like to present the knowledge about the so-called IPO, what is this thing to leave each other. If you're ready, let's go see it.

🔹 Get to know IPO

An IPO is an initial public offering of a company's shares. This will allow the company to be able to change its status from a private company to a public company for everyone to invest.

🔹 Those who benefit from the IPO

1. Company

After the IPO, the company will receive funds from investors to create things. according to the intent of the management for example Doing additional business expansions for more growth

2. Those who hold shares and investors

The fact that the company has changed its status from a private company to a public company makes this an important point that will allow the individual investor to receive a return on their investment. which is calculated from the share of internal shares as well

In addition, the IPO will also increase the transparency and increase the credibility of the company.

🔹 IPO, where does the money go?

The funds that the company receives from the investor's IPO will be recorded in the shareholders' equity It will be divided into 2 parts as follows: ordinary shares and net preferred shares.

How are you? I hope that this article will be very useful for all readers and see you in the next article.

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