IPO meaning in Banking ?

Answer:

What is Initial Public Offer mean?

An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also retail (individual) investors. An IPO is typically underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges. Through this process, colloquially known as floating, or going public, a privately held company is transformed into a public company. Initial public offerings can be used to raise new equity capital for companies, to monetize the investments of private shareholders such as company founders or private equity investors, and to enable easy trading of existing holdings or future capital raising by becoming publicly traded.

After the IPO, shares are traded freely in the open market at what is known as the free float. Stock exchanges stipulate a minimum free float both in absolute terms (the total value as determined by the share price multiplied by the number of shares sold to the public) and as a proportion of the total share capital (i.e., the number of shares sold to the public divided by the total shares outstanding). Although IPO offers many benefits, there are also significant costs involved, chiefly those associated with the process such as banking and legal fees, and the ongoing requirement to disclose important and sometimes sensitive information.

Details of the proposed offering are disclosed to potential purchasers in the form of a lengthy document known as a prospectus. Most companies undertake an IPO with the assistance of an investment banking firm acting in the capacity of an underwriter. Underwriters provide several services, including help with correctly assessing the value of shares (share price) and establishing a public market for shares (initial sale). Alternative methods such as the Dutch auction have also been explored and applied for several IPOs.

reference

Full Form	Category
Interdecadal Pacific Oscillation	Academic & Science
Interest Paid On	Accounts and Finance
Israel Philharmonic Orchestra	Arts
Initial Public Offer	Banking
Immediate Profit Opportunities	Business
It's Probably Overpriced	Business
Investment Process Outsourcing	Business
Industrial Process Optimization	Business
Ip Group	Business
International Purchase Office	Business
Installation Productivity Option	Business
Internationale Pruefungs Ordnung	Business
Infrastructure Production Operations	Business
Internationale Prufungs Ordnung	Business
Indirect Production Overhead	Business
Illinois Philharmonic Orchestra	Community
Input, Process, Output	Computer Hardware
International Purchasing Office	Computing
Internet Policy Observatory	Computing
Instant Porsche Owner	General
Insane People's Outing	General
Indonesian Palm Oil	General
International Progress Organization	General
International Pop Overthrow	General
itial Public Offering	General
itial Public Offer	General
International Programs Office	General
went public	General
itial Propaganda Offering	General
International Project Office	General
Introductory Price Offer	General
Immediate Profit Opportunity	General
Instant Profit Opportunity	General
Internet Parts Ordering	General
Inlet Port Opens	General
Inspecao Periodica Obrigatoria	General
Individual Purchase Order	General
Intellectual Property Office	Governmental
Indian Patent Office	Governmental
Intellectual Property Office [U.K.]	Governmental
Intellectual Property Owners	Governmental
Investigation Police Officer	Governmental
Ideological, Political, and Organizational	Governmental
Initial Public Office	Governmental
Institutional Parole Officer	Governmental
Intellectual Property Organization	Governmental
Inter Procedural Optimization	Information Technology
International Pasta Organization	International
International Pasta Organisation	International
Internet Phase One	Internet
Internet Provider of Origin	Internet
Instituto Português de Oncologia	Medical
Indian Postal Order	Messaging
I Peek Out	Messaging
Integrated Program Office	Military and Defence
Intercept Point Optimization	Military and Defence
International Program Office	Military and Defence
Internet Protocol Over ....	Networking
Input, Processing, and Output	Softwares
Initial Player Offering	Sports
Investing Pays Off	Stock Exchange
Insane Profit Opportunity	Stock Exchange
Initial Public Offering	Stock Exchange