An Initial Public Offering (IPO) is a significant event for companies looking to raise capital by offering their shares to the public for the first time. Investing in an IPO allows you to become an early shareholder of a company, potentially leading to substantial returns as the company grows. However, it also involves risks, as the company's future performance is uncertain.
Prospectus: The document that outlines the company’s business model, financials, and risks.
Pricing: IPOs are typically priced through a book-building process or fixed pricing method.
Allotment: Shares are allocated to investors based on demand and availability.
