Initial public offer ( IPO ) is a good option for an investor

IPO is the opening trade of stock by an individual company to the Public,retailer and the member of the association.Initial public offering (IPO) issued by the company for seeking capital to expand,but it can also be issued by giant companies look to become in public trade. Within an IPO an issuer can take help of an authorized underwriting firm,who help them to determine the type of security need to issue with best price band and time to launch into the market.Launching an IPO in market is generally called “public issue/offering”it is hard to predict for an individual investor in case of an IPO whether it perform or not.So,IPO always being a risky option for an investor to invest but that doesn’t mean that IPO is a bad option. It’s quite profitable option for those who can hold the stock for minimum 1 and above year.Now a day there is lots of historical data and information through media is available to judge the future performance and minimum return of an IPO.All the information regarding an IPO must be considered by an investor before investing for good return in future.

Reasons for listing
At what time a company list its share on the public exchange,it strength of mind almost always look in the direction of issue extra new share in put in order in the direction of raise additional assets on the similar time.The cash paid in the course of shareholder for the newly-issued share goes in a straight line to the company (in difference to a afterward trade of share on summit of the swap where the cash pass flanked by investor) An IPO, so allows a company in the direction of tap a broad pool of make available marketplace investor toward provide it by means of large volume of money intended for future growth.