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 ...