Difference between ipo and fpo?

Whereas IPO stands for initial public offering while FPO stands for follow up public offering. It has been a common observation that the IPO’s are usually more lucrative than FPO’s. IPO donation is made when company compiles money and FPO is subsequent public contribution.

Actually the first sale of a stock to the public by a private company is called an Initial Public Offering (IPO). They are frequently brought out by minor and novice companies in quest of capital to develop.

This is not only the case. Some large companies can also invest huge sums of money in order to gain more publicity. IPO can be a risky investment and it is very risky to predict what will and will not happen to the stock that has already been invested.

Companies that are going through transitory growth period require IPO for their future development and reputation.

The basic difference between the IPO and the FPO is the fact that the latter involves a contribution of supplementary shares subsequent an initial public offering by the company.

This occasionally signifies that the company is impecunious of currency. So they call for issuing extra shares to reimburse bills or funding a new project.