IPO?

IPO, if you know about this word, then you probably have idea it is related to shares.

First of all what is shares in my definition it is part in ownership. in other words part in profit. get it?

Company sales their part in profit for some money so, it is called buying a shares. Price of shares differ on company to company. how much profit company can give (in form of dividends and growth in price of shares price.

There should be place where company can sales there part in profit (Shares). So, that place is called share market (Like BSE and NSE). 

Now, if company wants to sale their share first time, then they need to register on Stock exchange and announce publicly that they want to sale their shares. if anyone interested can apply for buying their shares for the first time.

Full form of IPO is Initial Public Offer. get it ? 

Initial Public offer to sale their shares for the first time.

Hope we have clarified in simple language.

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