These days the share market is abuzz with the word IPO or Initial Public Offering (IPO). Every day, you are witnessing companies offering IPOs worth multi-crore. If you are among the people who are wondering what an IPO is or what is the meaning of IPO? In this video we will tell you what an IPO is.Also Read - Explained: New Wage Bill and How It Is Likely to Impact Your Salary Takeaway

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IPO means Initial Public Offering. It is a process by which a privately held company becomes a publicly-traded company by offering its shares to the public for the first time.

A private company that has a handful of shareholders shares the ownership by going public by trading its shares.

Through the IPO, companies get their names listed on the stock exchange which provides companies with an opportunity to obtain capital by offering shares through the primary market.

For more information and updates on IPO’s, login to India.com business section.