What is an IPO?

An Initial Public Offering (IPO) is the first time a company offers its shares to investors.

IPOs or new issues are usually the first opportunity for private investors to buy into a company. The money raised from an IPO or new issue can be used to grow the company, reduce debts, release cash to the current owners (often management or private equity holders) or in the case of investment trust launches, the monies are invested on the holder's behalf.