Answer: Initial public offering (IPO)
Explanation:
Initial public offering (IPO) is also known as stock market launch, it is the selling of a company's shares to public investors in other to raise capital. This is also termed "going public" or "floating" because it is the first time a company permits stockholders, which means the company was initially private- owned but has now gone public.
A company becoming IPO allows it to grow, expand and raise capital.
Advantages of IPO.
• It helps a company enlarge their equity base.
• It helps a company have easy access to capital.
• It creates multiple sources of financing such as equity, cheap loans from bank etc.
Disadvantages of IPO.
• Increased in cost which includes legal cost, marketing, communication,and accounting cost, etc.
• It requires more time, attention, and effective management skills.
