Understanding the primary distinctions between IPO and FPO
An IPO (Initial Public Offering) occurs when a business sells its stock to the general public for the first time to become listed on an exchange. Conversely, an FPO (Follow-on Public Offering) happens when a company that is already listed decides to issue additional shares. IPOs generally carry higher risk because investors lack historical performance data to evaluate the firm, whereas FPO investors have the benefit of reviewing past results. Typically, IPOs are anticipated to yield higher returns compared to FPOs.
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