What is ipo

1.	What is ipo
Answer» This invitation to purchase shares is also known as the initial\xa0public offering\xa0(IPO), through which a public company can raise the funds it requires.\xa0Initial public offerings\xa0(IPOs) are when a company offers stock shares to the public for the first time.\xa0IPOs\xa0can help a growing company expand, and it also allows early investors to cash in on their investments. IPO\xa0grading is the grade assigned by Sebi-registered credit rating agency or agencies to an\xa0initial public offering\xa0(IPO). The grade represents a relative assessment of the fundamentals of that issue in relation to the other listed securities in India.Here, one must note that the IPO\xa0grading\xa0is done without considering the price band at which the security is offered in the IPO. Investors need to make an independent judgment regarding the price at which they should bid for.

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