What are the Benefits of IPOs?
For businesses, stocks and shares are a fast way to raise revenue for business expansion and / or growth. By becoming a publicly traded company a business can take advantage of new, larger opportunities and can start working towards incorporation and even worldwide expansion. An IPO gives a company fast access to public capital. Even though an IPO can be costly and time consuming, the benefits are very appealing to companies. IPOs are also a relatively low risk for businesses and have the potential for financial gains and new opportunities. The more investors that wish to invest in a company, the more that company can benefit from the amount of capital raised by IPOs. For the investor, IPOs are attractive mainly because they may be undervalued. Initially, to make IPOs more attractive, many companies will offer their initial shares at a low rate. This helps to encourage investors, and investors will often buy IPOs thinking that the new company or the newly public company will be the nex
