If you do not have a lot of money but want to invest in stock market, there is something called Initial Public Offering or IPO in short. If you are new to stock market, you might be wondering what exactly is an IPO? Well, IPO is primary share of the company that is released for public after a company gets approved by security exchange for public trading. When a company enters the stock market for the first time, it releases IPO. This method of issuing primary shares helps new companies to raise funds for further development. Even though there might be scams, IPO can be profitable investment if you invest in legit company. IPO shares cost less than the secondary shares, shares that are trading in the stock market.
