Question
Initial Public Offer and Further Public Offer
| Points | Initial Public offer | Further Public offer |
| 1. Meaning | IPO refers to an offer of Securities by an unlisted public company to the public for the first time. | FPO means an offer of securities by a listed public company to the public to raise subsequent capital. |
| 2. Raising Money | Raising Money for the first time from the public. | Before FPO Company has already raised money through an IPO. |
| 3. When Issued | It is usually issued by an existing company that wants to raise capital from the public for the first time. | It is usually issued by a listed public company when it wants to raise further capital from the public. |
| 4. Order of Issue | IPO precedes FPO. IPO is the first time sale of shares to the public. | FPO is always done after IPO. FPO is the second or subsequent sale of shares to the public. |
| 5. Listing | The company has to get itself listed for the first time before issuing IPO. | A company making an FPO is already a listed company. |
| 6. Risk | It is very risky for the investor as he cannot predict the company’s performance. | It is less risky for the investor as he has an idea of the company’s past performance and can judge its future performance. |
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