Definitions of IPO share and FPO Share

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 First of all you should know about IPO, FPO, Right Share, Debenture and Mutual Fund before entering share market. lets start:

Initial Public Offering (IPO) Share

An unlisted company (A company which is not listed on the stock exchange) announces initial public offering (IPO) when it decides to raise funds through sale of securities or shares for the first time to the public. In other words, IPO is the selling of securities to the public in the primary market.

While many companies choose to do an initial public offering (IPO), in which new shares are created, underwritten, and sold to the public, some companies choose a direct listing, in which no new shares are created and only existing, outstanding shares are sold with no underwriters involved.

According to WiKipedia: An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors[1] and usually also retail (individual) investors.[2] An IPO is typically underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges. Through this process, colloquially known as floating, or going public, a privately held company is transformed into a public company. Initial public offerings can be used to raise new equity capital for companies, to monetize the investments of private shareholders such as company founders or private equity investors, and to enable easy trading of existing holdings or future capital raising by becoming publicly traded. 

Further Public Offering (FPO) / Follow-On Public Offering Share

A follow-on public offer (FPO), also known as a secondary offering, is the additional issuance of shares after the initial public offering (IPO). In other hand, FPO (Follow on Public Offer) is a process by which a company, which is already listed on an exchange, issues new shares to the investors or the existing shareholders, usually the promoters. FPO is used by companies to diversify their equity base.


Different between IPO and FPO Share: FPO is a follow up to the IPO as the name suggests. A follow on public offer is the issuance of shares after the company is listed on a stock exchange. In other words, an FPO is an additional issue whereas an IPO is an initial or first issue.

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